Thanks for your suggestions but I confrimed its my web host who is not allowing my site access to create directories on the file system. It appears I can write files but not create/delete folders. When I use your the uploader in the most primitive form just putting a file in the temp directory and then moving it to an already existing folder then it works fine. It was the other file system manipulation I was doing that is causing the problem. It was my suspicion the whole time that it was my web host since nothing had changed from my side. Thanks again for your help.
If you have any other suggestions I am all ears.