I have tried the solutions listed above, however they are not providing a solution. Here is some other information that might be pertinant.
I am running apache version 2.
I have a feeling that the mod_security solution has just been working for apache 1.x users.
I have tried setting the absolute upload path as well.
My wordpress installation is in /wordpress/
user.domain.com/wordpress/
I have chmoded 777 and chowned appropriately just for testing purposes and have seen no difference.
Can someone tell me how to disable the flash uploader just temporarily until this is resolved? Or even better offer up a working solution! Thanks!