I was having some trouble a while back uploading media to my WordPress install. I would continually get an error stating that the media couldn’t be moved to the correct folder. I had tried all the forum solutions including even changing permissions to 777. Nothing seemed to work. After stumbling across a few threads on wordpress and finding a Mediatemple community wiki article I came up with a solution.

First I needed to enable fastCGI for my domain that I was having issues with. Mediatemple has an excellent article on how to do that:
http://kb.mediatemple.net/questions/1890/%28dv%29+How+do+I+enable+FastCGI%3F#dv_40

After enabling fastCGI I noticed my website was broken. I was getting a 503 error after about waiting 30 seconds for the page to load. After googling around I found the following article on how to resolve some of the common problems faced when enabling fastCGI on a DV server:
http://wiki.mediatemple.net/w/%28dv%29_4.0:Enable_FastCGI

Issuing the following command as root via ssh solved the problem:
chown apache:apache /var/run/mod_fcgid/sock && service httpd restart

http://kb.mediatemple.net/questions/1890/%28dv%29+How+do+I+enable+FastCGI%3F#dv_40
http://wordpress.org/support/topic/solution-to-mediatemple-dv-upload-error-problem
http://wiki.mediatemple.net/w/%28dv%29_4.0:Enable_FastCGI