can't upload any images

I have tried for hours now to upload images and it is not working. Please help me.

I created a folder on my ftp under /wp-content/uploads/image_shop/ and added this to the “Gallery folder path” in the settings page. I also changed the permission to wp-content to 777.

I downloaded and installed the version from this page http://xparkmedia.com/2012/01/image-store-30-rc1/
Supposedly this is version 3, but the license.txt file still shows it as Version 2

Anyway, when I create a new galley, I try to upload images but no images are uploaded to my server at all even though the “folder path” says /wp-content/uploads/image_shop/gallery#

What am I doing wrong?