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The problem is it keeps coming up with permission denied errors and I was wonderin where I can change folder and file permissions, that is if there isn' any other problems
To expand a bit, you should make an upload directory with php mkdir(): that way php will be the owner of the folder and can still write to it if its set to something more secure such as 755.
You'll probably need to chmod the parent dir 777 (with your ftp program/telnet), create the new folder inside that with php, then chmod the parent back to 755 or whatever.
A dirinfo command in your ftp program can help to see what's going on. You'll notice that files/folders created with your ftp program have a different UID to those dreated with php (which often has the owner/group nobody/nobody).