Upgrade to 5.2.1 from 5.2 results in "invalid_attachment_storage" when user tries to attach an image

[basslion]

We recently upgraded from 5.2.1 from 5.2 and users are reporting the following error message when they try to upload an image.

invalid_attachment_storage


Also we have all images currently being stored in the filesystem at /home/account/public_html/attachments


Also when we right click on a broken image on our site and click view in new tab, the path to the image shows as:

http://www.domainname.com/filedata/fetch?photoid=57006

Any help is greatly appreciated!