Actually I found out what it was and it wasn't that. I'll post it here for others too.
I installed the same install on a different host server I have and it runs perfectly. The issue seems to be in the global configurations FTP settings.
When installing the package, you have the choice to input the FTP info and to enable FTP and use the verify FTP and autofind path buttons. I suggest using those and making sure you it says that FTP Settings are verified. Once thats done and you are complete with the installation, you need to go to Global Configurations and set FTP Enabled to Off. If you leave FTP Enabled on there, you cannot upload images for slides or through the editor, when you turn it off, it uploads everything fine.
My guess is that the global configurations section is not writing correctly or its not able to override the settings done via the installation. I dunno, but thats how I got it fixed on two installs now.
Hope that info helps others too.
Thanks again for your time tetibite, really appreciate it.