The File Manager is notorious for having problems with permissions. Check that the server directories that you're uploading the images to are wide open (777) and see if that makes a difference. (If it does, then scale back to a security setting that allows uploading and doesn't allow 'world' write access ;) )

Alternatively, I've never used the FM, preferring to upload images via FTP (old school). But, it works! :D

I tried the 777 thing and still get the same message..........so how do I ftp to blog message...not sure how to do that????

Well, first you need to get some FTP software (unless you like to use the crude, but useable MSDOS window)

Personally, I'd recommend something like [url=http://sourceforge.net/projects/filezilla/]FileZilla[/url] (another open-source project, like b2evo) :D

Just download, install and use. It's kinda like your existing File Directory / XP explorer thing ... just need to do a quick connect to your host ( URL, username + password ) and then you're dragging and dropping files as if it were a local drive.

Pretty much all there is to it.

Personally, I LIKE having my images outside of the b2evo install, as it makes upgrading very simple. I put them in a directory called something like http://mysite.com/media/blog/Y[ea]Rm[ont]h/blah.jpg. But with FTP, you're not confined to the b2evo FileManager way of thinking. ;)

Hope this helps.