This isn't a GF specific error, but I am trying to upgrade (using WP Automatic Upgrade) and I am getting the following error:
Updating Plugin Gravity Forms (1/1)
Downloading update from http://s3.amazonaws.com/gravityforms/releases....
Unpacking the update…
An error occured while updating Gravity Forms: Could not create directory. /home/g...t/public_html/wp-content/upgrade/gravityforms_1.tmp/gravityforms.
Disabling Maintenance mode…
I've tried changing permissions to 777 and no luck.
Not sure what else to do. Can't find much other suggestions on the WWW. :(