in reply to Opening Files and File / Directory Permissions

You need to have executable permission on the directory, otherwise the user ('nobody') can't change into the directory to write stuff there (even if write permissions is set). This should fix it:
chmod ug+x /your/webroot/path/upload chmod o-rw /your/webroot/path/upload # this is optional, but advi +sable
Ultimately, needs to look like this (assuming both lines from above are run):
[root@localhost upload]# ls -al total 56 drwxrwx--- 3 wohldad nobody 4096 Aug 24 08:51 . drwxr-xr-x 26 root root 4096 Aug 22 00:41 ..