Recently I having a problem by using wordpress image upload ==> Write > post > upload , always returned an error said permission not set even the permission for the specific folder already set to “777”. Finally my host help me to solve this problem by the following step:
> OPTION
> Miscellaneous
uncheck the following line:
>Organize my uploads into month- and year-based folders
>update options
it works after this action, but I have another hosting with the above line “checked” the image can be upload without any problem, so I would said this is not a final solution, but you can give a try.