This seems like a question for your hosts tech support, as this error:
Warning: is_readable() [function.is-readable]: open_basedir restriction in effect
has something to do with a server setting.
PHP’s open_basedir protection prevents users from opening files outside of their home directory with php.
I’ve seen similar problems to this and they aren’t wordpress specific, more MediaTemple and php related. The open_basedir can be turned off if needed from their end.