I just installed NextGEN gallery on WordPress 3.1 on my Linux server. I have errors when uploading using the flash file uploader:

ERROR IO FAILURE : image.jpg : Error #2038

My nginx.conf already have this:

client_max_body_size 2M;

..and my php.ini have this:

upload_max_filesize = 2M

Also the whole install folder of wordpress (and all subfolders) have 777 permission set (all writable)

The images are small, so the size should not be an issue here. I'm out of ideas, does anyone else have some?

Bumping in hope of an answer :)