I am having this problem too, and have thus far only found a workaround rather than a solution. The problem in my case was that the directory didn't exsist.
In your case : Warning: Unable to create './../data/media/1/gif.gif': No such file or directory in /home/cadeautip/HTML/includes/upload.php on line 121
it would mean the directory "1" does not exsits. I found that my manually adding this dir to the media dir worked fine, and the pictures uploaded fine from there. For some reason, 4home was not making the dir. itself.
I haven't yet got an answer as to why this is, or how to fix it. Also note, I think each catagory/subcatagory will use it own DIR so you'll have to do it each time you try and upload a new picture to a new catagory.
Good luck, hope this helps..and if you find anything else out, please share.
