Ok solved. First of all, on your server,
DONT set 777 permissions ... Your server has some security implementation that returns a server error if folder is set to 777. For your server, you should not need to set permissions at all, because default permissions are sufficient for X3. Your default permissions are
755 for folders and
644 for files.
Your diagnostics page was not working in one location because it has permissions 777 applied, but it is working now:
http://larryanda.com/photography/diag/
I need to amend the documentation about permissions it seems ...
max_file_uploads
As you can see in your diagnostics page, your server has a
max_file_uploads of 20 files (per batch).
You would need to ask your host to increase it ...