If you ever get this message when trying to upload images to your WP site: "The uploaded file could not be moved to...", don't worry there is a very simple fix.
You may notice that this all of a sudden happens for no apparent reason even after working a few hours ago.
Have you tried to do a backup of your WP system using backup buddy, or similar? If so check that the backup did not fail. In simple terms if WP finds a failed backup, it will not let you upload or change your content or upload files. It tries to protect your site from you updating it without having a backup to recover from if you mess everything up. If there is a backup marked as "Bad" delete it and make sure that you have a valid back up before trying to update your site again.
Do not try chmod 777 to your files, this is a security nightmare in the making.
Nightmare over !!!