Errors Uploading pics

I am trying to add products to my wordpress site (using WPEC 3.8.13.4 I refuse to update to the next version as I have in the past and lost all ability on the website to actually get a sale as the cart stopped working). I keep getting a lost connection and if I do get through to the uploader I get this message – Unable to create directory uploads/2014/09. Is its parent directory writable by the server?

What does that mean? I recently updated to the new wordpress, so has that messed with something? I just want to add more products to my site, every update with wordpress or WPEC seems to halt the website completely!! It is getting so frustrating!

Another issue is the New Products widget, the first pic in the list is now gigantic and there is nowhere to change it back to normal!