Got this error (Unable to create directory /uploads/xxx), while trying to upload media files to a WordPress folder. The following work-around did the job for me and hence thought of sharing it.
1. Log into your WordPress admin dashboard.
2. Go to Media Settings menu (Settings -> Media)
3. Enter wp-content/uploads in the “Store uploads in this folder” text box.
4. Save the changes by hitting the “Save Changes” button and you are done.
Author : Rashid P Poovallathil