Was this thread ever resolved. Just installed 3.0.9 and having the same issue – can’t add images via zip or image uploader. Specifically I am receiving the message:

Warning: copy(/var/www/vhosts/kushweddings.com/httpdocs/wp-content/_imsgalleries/alka&peter/AP0021,jpg)[function.copy]: failed to open stream: Permission denied in /var/www/vhosts/kushweddings.com/httpdocs/x/wp-admin/includes/file.php

When I then reload the gallery I can see the image details, but no thumbnail – the image is in the alka&peter folder within /_imsgalleries but there is no thumbs folder or thumbs image.

Spent some time trying to debug this: Have uninstalled Image Store. Reinstalled. Reset. Reuploaded 3.0.9. Set all permissions to 777, set folders to 775, files to 644, really at wits end!

Any resolution/suggestions?

John