Uploads stuck in wp-content

I am trying to set up a photoblog for a friend (brandon.slipabuck.com). I don’t want his account to be able to edit the PHPs, so I have given him level 5 access, and have moved the Upload level to 5. I have also installed Exhibit.

Exhibit works great, although I wanted both it and Upload installed, because I know that when I tried exhibit on my site (www.theillustratedlife.com), there were mad compression artifacts, and those aren’t good for technical photography. Exhibit points to /images, but Upload will not. When I upload to /images with Upload, it puts them in /wp-content anyway. I know I could point Exhibit to /wp-content as well, but for organization’s sake, I’d really rather have an images folder.

Anyone know why Upload doesn’t work?