The first thing I checked -> The upload directories have the correct permissions.
Trying to upload something in my hosted blogs' wp-admin gives the following:
Warning: Invalid argument supplied for foreach() in /home/nathan/xblogs.ca/wp-includes/functions.php on line 1215
Warning: Cannot modify header information - headers already sent by (output started at /home/nathan/xblogs.ca/wp-includes/functions.php:1215) in /home/nathan/xblogs.ca/wp-includes/functions.php on line 1344