Problem with image uploading

[Jackie Becton]

So I'm trying to set up alchemy for a thing I'm working on. Everything has been working so far and up to this point I've been using the stand alone version of Phusion Passenger to run it. Now I'm trying to do it with their Apache version. It runs everything, but for some reason it won't upload images. Like the image will quickly upload, the upload bar will turn blue, then turn red. Like this. 

I'm pretty sure I just don't have something configured right with apache, but I'm pretty new to a lot of this and would welcome any advice. 
Any ideas on what to do? I've tried googling the problem but haven't been able to find anything so far. 

[Jackie Becton]

To clarify, image uploading works fine in the standalone version, but not in the Apache version.