Success! I got the upload image problem fixed!!!!
I wanted to come back to this forum and pass on what I learned to Patrick and Hawkeye and people in the future who have the same problem.
In my case the problem had to do with ownership of the folders where the images were to be uploaded. I found a great explanation of the problem here
In many of the previous solutions people fixed the problem with changes of permissions, but what they didn’t address was the issue of the ownership and differences of an FTP owner changing permissions and an http owner changing permission. Read on because the following author says it better:
WordPress: The uploaded file could not be moved
One of the most common errors after installing WordPress on your hosting account is the “The uploaded file could not be moved” error when trying to upload a file. Typically the error message looks like this:
The uploaded file could not be moved to /var/www/vhosts/domain.com/httpdocs/wp-content/uploads.
This is a common error due to permissions. I got this error fixing a WordPress instalation on another host which, will remain unnamed, for a treasonist family member who does not use ServerGrove, who will also remain unnamed. I did some research and while reading the solutions out there I was amazed to see the amount of posts asking people to chmod 777 their entire wp-content and wp-content/upload directory. Let me say this once: it’s never a good solution to chmod 777 an entire directory.
Let’s analyze the problem to better understand what’s going on. When you create directories either via FTP or via some other method, the directory is owned by the user that created that directory. So when you upload your WordPress via FTP the directories are owned by your user. Then when we try to upload images via the WordPress admin we are uploading via a web page we are actually uploading via http, and items uploaded through http are owned by the Apache user, master of http. So when the Apache user tried to put a file in the folder owned by your user, Linux steps in and notes there is a permission problem. You cannot put content into a directory owned by another user and spits back the error:
The uploaded file could not be moved to /var/www/vhosts/domain.com/httpdocs/wp-content/uploads.
So, the question rises, why does this happen on some hosts and does not happen on other hosting companies like ServerGrove? Well for one, we are wise, and know that permissions errors are very common and easily avoidable (kind of like acne). The solution lies in the way your shared hosting server is setup, some hosting companies slap the default installations and other wiser ones spend their waking hours fine tuning the servers and making them perform faster and work better for their clients. Our servers are configured so Apache runs as the same user as your user (a different one for each website), this means that your user and Apache are the same which makes everyone’s life easier.
I went to my server host and armed with this information asked him if he could fix it. He did. He is the owner of Ctyme Hosting (not ServerGrove which sounds like a good host) but he was very responsive and made the changes I could not make that had to do with ownership and permissions.
Good luck to all. I hope that this also helps people in the future with the same problem.