I have wordpress MU installed on a VPS and I am getting the error:
Upload Failed! Error was: Unable to create directory /var/www/vhosts/aboutchow.com/httpdocs/wordpress-mu/wp-content/blogs.dir/1/files/avatars/1. Is its parent directory writable by the server?

I have set the permissions on the directories to allow access but still receive the error.  When the dir blogs.dir is first created by wordpress it sets the owner and group to apache / apache,  I have deleted the directory and recreated in via ftp so that the owner and group was the same as the other files and directories and set the permissions and still get the same errors.

Any help would be appreciated.