Indexhibit Support

This is one possible answer to many of the unanswered threads regarding the issue with uploading images.

If you get an Internal Server Error while i.e. uploading images and your permissions are set correctly it could be because of a misconfigured or missing library in the server system:
In Debian system the package is called "php5-gd".
Install, update or reconfigure the package on your server or ask your hoster to check the configuration of the GD Library with PHP.

Please consider that this may not resolve the issue for all of you out there.

Many unanswered threads?

I don't answer them because they have been answered before - plus, I wish other people would help answer things. I am only one person - I have pretty much answered everything before.

Your problem is a server setup issue - most, if not all, people have GD installed on their shared hosts. GD is super common.

Most problems are that people don't have tmp folders, they are missing a javascript file (or even a caching issue) or the host has a mod-security rule that is getting in the way. Those are the most common problems. I'm only answering now because I don't want a ton of people to ask their host about it because your situation is very rare.

I do what I can around here. I wish there was more I can do...but I think I've already done alot.