We recently upgrade from 1.1 to 1.3 (going to 1.2 as an intermediate step) and since then, whenever we try to save a new item, we get the "The given destination is not writeable". The archive directory and all its subdirectories and files are 777, but I believe the problem may be somewhere else, because this happens even without attempting to upload files.
Have you tried chmod 775 for the archive and its subdirectories?
Well, I hadn't tried it, but it did just now and I get the same error. Apparently PHP is viewing those directories as unwriteable for some reason. I should note that I don't have the authority to change the owner/group of the files/directories. Currently they are owned by me, and in a group that I'm a member of. I've contacted the server admins to get them to change the owner/group to "httpd", to see if that helps. I'll post any results when that happens, but still welcome any advice. Thanks!