Upgrading from 1.0.5 to 1.21 fails on Step 3 /img

[shaiss]

Not sure why this is happening. This is on a local machine running LAMP.

On step 3 the installer says the /img directory is not writable. However, under terminal I can see it is See the screenshoots below

Installer


Terminal sudo chmod -Rv 777 img/ output:
http://pastie.org/594486

Firebug entry in console when clicking "refresh these settings" in the installer

Any ideas? Am I missing something obvious?

UPDATE:
I restored my backup db and unzipped ps into its new folder and started the upgrade again. Same thing on step 2
output of chmod -Rv 777 img/ mails/ modules/ themes/prestashop/lang/ translations/
http://pastie.org/594512
After making the /config/settings.inc.php writeable
chmod 777 config/settings.inc.php
I can continue the installer, but it seams to hang and the bar at the top just spins forever. I'm gonna go to lunch and come back to it in an hour to see if anything's happend

UPDATE 2:
3 hours later. The installer is still sitting there. I clicked recheck, same error. I clicked next, and received the error

One or more errors have occurred

Version v1.2.1.0 is already installed.

Not quite sure where to go from here, I'll keep playing with it.
Would the .sql dump help from before the upg? Let me know and I'll email it if needed