Error uploading a product image

[zaps]

I have been using the OSCOMMERCE for more than 6 months without any problems. But suddenly from last week, whenever I try to add a new product, I get the following error:

 

Warning: No file uploaded.

Error: Catalog images directory is not writeable: images/

 

I checked the CHMOD Value and it is 777.

 

I am unable to add photos when adding a new product.

 

Can somebody please help?

 

Thanks in advance.