Same thing here:

"Warning: move_uploaded_file(): SAFE MODE Restriction in effect. The script whose uid is 10418 is not allowed to access /home/httpd/vhosts/dorinde.nl/httpdocs/kvd/uploads owned by uid 48 in /home/httpd/vhosts/dorinde.nl/httpdocs/kvd/serendipity_admin_images.inc.php on line 155 ...

I got the same errors. Don't live on the edge, the latest beta (date of this entry 30-8-2004) doesn't install well. The commended one does, in my case, and I like it. A lot.