Error Msg : No permissions to upload images.

I am able to see this error in my logs

[Wed Feb 05 07:11:08 2014] [error] [client 67.142.166.25] File does not exist: /home/dpphot5/public_html/new/400.shtml, referer: https://new.hillcrest-enterprises.com/wp-admin/admin.php?page=ngg_addgallery
[Wed Feb 05 07:07:20 2014] [error] [client 67.142.166.25] File does not exist: /home/dpphot5/public_html/new/400.shtml, referer: https://new.hillcrest-enterprises.com/wp-admin/admin.php?page=ngg_other_options

All folders are set to 0755

@dpphotosgd Can you copy and paste here the server configuration that you can find in Overview?

Operating System : Linux (64 Bit)
Server : Apache
Memory usage : 48.26 MByte
MYSQL Version : 5.5.34-log
SQL Mode : Not set
PHP Version : 5.3.27
PHP Safe Mode : Off
PHP Allow URL fopen : On
PHP Memory Limit : 512
PHP Max Upload Size : 128M
PHP Max Post Size : 128M
PCRE Backtracking Limit : 1000000
PHP Max Script Execute Time : N/As
PHP Exif support : Yes ( V1.4 )
PHP IPTC support : Yes
PHP XML support : Yes
Graphic Library

GD Version : bundled (2.1.0 compatible)
FreeType Support : Yes
FreeType Linkage : with freetype
T1Lib Support : No
GIF Read Support : Yes
GIF Create Support : Yes
JPEG Support : Yes
PNG Support : Yes
WBMP Support : Yes
XPM Support : Yes
XBM Support : Yes
JIS-mapped Japanese Font Support : No

I have disabled all other plugins, still get the error, I have changed the theme and still the same error.

Well not sure what happened but did contact my host and they looked at the server end, I rebooted my mac. and now I can once again upload images.