Its not a safe_mode issue.
The parent folder & children must be writable by the webserver.
755 or below should only be required on clientscript.
777 should be required depending on server setup, ie running in suphp would allow lower chmod permissions.
Who is the owner & group on those folders?
safe_modes basic/original function was to try to make a secure enviroment for broken scripts, so in other words it wont let you write out side of the parent your user has access to, that includes the /tmp folder you would even place above your public_html folder.
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