No I don't think you should be worried, but I'm not a *nix security bunny. I'm sure this is similar to the Dreamhost issues, where a /tmp directory needed to be created in the docroot. I don't think the symptoms were the same however.
You should probably get a short "how to" added to the hosting page for this host then if you have time. Not sure if you just put it in the comments section or email it to SS. Sam may be able to clarify if he's still watching this thread.
See [url]http://doc.silverstripe.com/doku.php?id=suggested-web-hosts[/url] for how the tips are formatted. That page has come in handy a few times when duplicate problems arise.
I assume you aren't on shared if you have access to php.ini. I wonder how this will work for people on shared setups unless you can set the save path in .htaccess.
Deny from all
</Location> in .htaccess file it gives me an error, i tried many other ways, but still no luck, (i am sure it is something really simple... i am just starting to learn this stuff)