I am having the exact same issue this morning and de-activated all my Plug-Ins, but that hasn’t worked and showing the same error as the posted above.
Warning: copy(/webspace/httpdocs/blog/wp-content/uploads/2012/03/image.jpg): failed to open stream: Permission denied in /webspace/httpdocs/blog/wp-admin/includes/file.php on line 348
I have looked in the directory folder and the image is not there even though the image uploader looks as if it has uploaded the image to the media library. I can see a file with the blue background and question mark and even select it to appear in the article post – but the image itself does not appear.
I have set all my folder permissions to 777 all the way up to the root directory but this has not helped.
Any suggestions?