thinkmedia on ""image" has failed to upload due to an error"

Hi,

I have read all the other posts/discussions about this and I have changed my folder permissions to 777.

I still get this message when trying to upload an image.

“gravatar_MP.jpg” has failed to upload due to an error
The uploaded file could not be moved to wp-content/uploads/2014/04.

The interesting thing is that when I FTP to the folder, the image is actually there but it doesn't show up in the Media Library nor can I put it in a post.

I can create posts and pages so that part of WP works and says to me that the db is working and I can write to it.

Does anyone have any ideas on this?

Thanks!