I know another topis about this. I searched but I could find a working answer to my problem.  The image gallry works fine when I manual upload them to the image folder.  I would like to take advantage of the K2 image gallery feature though.  I do not know how to check or change the cache to 777 I could not find any help either.  that is the only left to try I guess.  Nothing happens when I upload the zip file.

Go to your ftp folders, find your cache folder and change the permissions to 777 by right clicking on it.