SO I check my permissions they all look fine.......
Heres the error im getting!
Create thumbnail for: DSC 5748 (DSC_5748.JPG) ....
Warning: imagejpeg(): Unable to open './../data/thumbnails/7/DSC_5748.JPG' for writing in /hsphere/local/home/illusive/scikotics-ccc.com/includes/image_utils.php on line 93
Error creating thumbnail!