I finally got it to work, but now I can't get any of the images to show up in the admin. I've changed all the permissions to 777 and I'm still getting forbidden when trying to load the images. Any ideas?
I have EXACTLY this issue - so what do you do to FINALLY get it to work?

Just keep reuploading in binary mode? What?
Thanks ahead of time.
P.S. - there is nothing in the installation PDF that mentions the word BINARY - would have been helpful - duh.