i just updated to version 1 via a wipe and clean install.
product image uploading is now broken for me (upload http error)
the funny thing is that it used to work flawlessly with version .7 something
all permissions set are correct (chmod 777)
problem solved. apparently since the .htaccess files are hidden files my computer was not uploading them to the server, causing issues for the first time. i enabled hidden files in finder and now i was able to upload them and solve the problem.