Configuration

I am using drupal 4.7.2, Apache server, php4. I don't have root privileges.

Reproducing error

With drupal freshly installed, I set 

File system path: files
Temporary directory: files/temp

(Both directories with 777 permissions)

When uploading a file, I get the following error:

The selected file files/temp/tmp_BN6926 could not be uploaded, 
because the destination imac.jpg is not properly configured.

with the following 2 log errors:

1. The selected file files/temp/tmp_BN6926 could not not be uploaded, 
because the destination imac.jpg could not be found, 
or because its permissions do not allow the file to be written.

2. The directory . is not writable, because it does not have the correct permissions set.

The file is successfully uploaded in files/temp, but not moved to files.

Fix

Set:

File system path: <em>/full-unix-path-to-drupal/</em>files
Temporary directory:  <em>/full-unix-path-to-drupal/</em>files/temp
Download method: private

And now uploading works correctly.