Forum template not allowing image

I have V3 of the forum template.
When I try to add a file with an image on my server, it won't do it.
The files directory that was stated that needed to have write privs does, so I know that's not the issue.
The app runs properly when I run it locally, but not on my server.

Is there some php component that needs to be turned on that I haven't turned on on my server?
Or something like that?

Alan