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When trying to upload media using either the flash or browser method messages informing me that the upload has failed are shown. These issue revolve around the permissions of /wp-content/blogs.dir/2/files/2012/09/. I have manually created this path and have given it the required permissions.

I think this is likely an issue with my .htaccess but I'm not sure exactly where the issue lies.

I have tried giving the www-data account, the root account and the sites FTP accounts access to this. Still no success.

Although not particularly secure, I have also set all permissions to Read / Write. (777).

.htaccess file shown below:
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# uploaded files
RewriteRule ^files/(.+) wp-includes/ms-files.php?file=$1 [L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule . index.php [L]

There are no errors in the Apache access or error logs.

Any suggestions? I'm under pressure to get this resolved quickly so any help would be really appreciated.