Unable to Upload Image to Media Gallery.

Drupal 7.12 Hosted on shared server.

I am unable to upload image to Media Gallery. The images are set to upload to: sites/default/files

The Gallery page shows broken links icons after upload using Plupload integration module. The error messages are as follows:

"The specified file temporary://p16rark1di10fe1jml16kh1375juv4.tmp could not be copied, because no file by that name exists. Please check that you supplied the correct filename.
PDOException: SQLSTATE[23000]: Integrity constraint violation: 1062 Duplicate entry '' for key 2: INSERT INTO {file_managed} (uid, filename, uri, filemime, filesize, status, timestamp, type) VALUES (:db_insert_placeholder_0, :db_insert_placeholder_1, :db_insert_placeholder_2, :db_insert_placeholder_3, :db_insert_placeholder_4, :db_insert_placeholder_5, :db_insert_placeholder_6, :db_insert_placeholder_7); Array ( [:db_insert_placeholder_0] => 1 [:db_insert_placeholder_1] => [:db_insert_placeholder_2] => [:db_insert_placeholder_3] => application/octet-stream [:db_insert_placeholder_4] => 0 [:db_insert_placeholder_5] => 1 [:db_insert_placeholder_6] => 1335025607 [:db_insert_placeholder_7] => default ) in drupal_write_record() (line 6975 of /home/willdoit/public_html/businesses/drupal/includes/common.inc)."(Screenshot attached)

If I do not enable Plupload the error message changes to this:"No file appears to have been selected."(Screenshot attached)

This is one of two sites that use the same theme and modules. On one site I have no problem uploading images to the Media Gallery. This site is a different story. I have been researching it for way too many hours to count. I thought it may have been a permissions issue, but all folder permissions are set to 775.

I am so deep into the forest that I have become totally lost and need to find a way out of this mess.