Image Upload Issues

I am having problems uploading an image to a news article.  I receive the error message below when trying to upload a new image.

Temp Upload dir '/localservices/phpupload' does't exist! Ask server admin to check 'upload_tmp_dir' setting in php.ini.

Has anybody encountered a similar issue? 

I am on version 2.15 and have not had a problem until the last week.

Thank you for any help.