it has nothing to do with the database, it is a permissions issue. the upload is trying to create the uploaded file in that directory, since it already exists there, it is trying to create another copy of a different name, but the directory does not have the appropriate permissions to to create the file.
What version of security assist are you using?
Are you using Encryption for the password?
In security assist 2 The forgot password page is a complex page to create manually, I recommend using the security assist wizard to create the forgot password page instead of trying to do it manually.