It had been a while since I last saw the “Upload folder is not writable. Export and file upload features will not be functional.” I had totally forgotten how to fix it or even that I had ever seen it before. DOH!!!
After trying to fix things for a good number of hours, I finally found the answer at wpquestions.com.
check the path in settings -> Miscellaneous
OF COURSE!!! I have run into this issue many times before when moving a site. I simply deleted all the junk that was in the “Store uploads in this folder” field on “Settings”->”Media” in the WordPress admin.