I’m not sure about other versions but in WordPress 3.0.4, log into wp-admin and under ‘Settings’ down the left click on ‘Media’.
(I think the same area is under Settings -> Miscellaneous in older versions of WordPress – could be wrong though)
Under ‘Store uploads in this folder’ type in: wp-content/uploads
Even though WordPress shows ‘Default is wp-content/upLoads’, YAPB doesn’t seem to acknowledge that!
Fixed it for me anyway. Hope it helps
