I am running WP 3.5. I use Anchor Web Hosting. Been with them for years (but just now began using WP). I did use their 1 Click install. Everything worked fine in the initial setup. I can still upload new podcast episodes, write a new blog post, or whatever. Just can't save changes in PowerPress anymore. All the files and directories seem to be in the right place.
When the error message pops up, this is the filename in IE.
When I hit refresh, it goes back to the settings page and nothing has been saved.
It seems as if the program cannot write to that file anymore, but when I removed read/write permissions on that file as an experiment, I got a much different error message so I know PowerPress still has access to the file.
As an act of desperation I already re-installed WordPress last night, but to no avail.
I thought about re-installing PowerPress, but I don't want to chance losing any podcast episodes that I have already uploaded.