Permission denied ... line 418??

[lbimaging]

I installed 1.4.3 on a new server. Installation went fine. All paths are readable and writable. Prior to moving my previous images (from http://www.lbimaging.us) to this new server, I try to post a test image. I receive this message:

Warning: move_uploaded_file(/home2/lbimagin/public_html/20060211031711_dscf0634 copy r.jpg): failed to open stream: Permission denied in /home2/lbimagin/public_html/admin/index.php on line 418

Warning: move_uploaded_file(): Unable to move '/tmp/phpegeK8P' to '/home2/lbimagin/public_html/20060211031711_dscf0634 copy r.jpg' in /home2/lbimagin/public_html/admin/index.php on line 418

I search this forum numerous times and can't find a thread directly relevant to this exact error. What the heck could be wrong here???