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Hi etrivias,
Almost missed the thread...
Curious how problems rise. However since you are on a free host I get the feeling the problem does not lay on my site...
The file does not necessary requires 777 permission, but at least writing permissions. So 766 should do it (apply it on uploads/shoutbox/shouts.cvs).
If the problem remains, enable php debug (System Admin - Settings) and post here any debug error that shows up during the use of shoutbox. You might also tell your XOOPS and php version.