open your PHP Info page (there is one in your forum's Admin CP). Scroll down and find the heading "Loaded Modules" and see if "mod_security" is in the list. [/align]
ACP > Tools & Maintenance > PHP Info
I think the issue you've been having is the server has suphp installed which doesn't accept 777 permissions. Try changing them to 755 instead.
I found it, I see the mod_security.