Upgraded Gallery 2.0->2.1 and now GR errors on upload

I upgraded my gallery from 2.0 to 2.1, and now Gallery Remote won't upload.
Here is the error I get:

Error: Server contacted, but Gallery not found at this URL

1. I can go to the said URL and Gallery is there.
2. Site Admin->Modules->Import->Remote is installed and activated.
3. I did create a gallery_remote2.php file in the Gallery root folder (it did not exist) with the following text (as instructed in the forums):

<?php
header("HTTP/1.0 404 Not Found");
exit;
?>

Otherwise, the ONLY difference between before (it was working just last week) and now is that I upgraded to 2.1 (Extracted files on top of 2.0 and ran through the Upgrade Wizard)

I did re-extract again for the 3rd time just to make sure all files were replaced/updated... but still the same.
(And even tried Gallery Remote from a different PC)

Any ideas?