Can not create or upload a workflow from sharepoint designer

I am trying to upload a workflow from Sharepoint Designer to WSS3.0. If I make the workload manual it uploads but I cannot start it. If I make it automatic (preferred), it failes to upload. In either case it says Access Denied. I have tried the administrator, web app login, myself (all have full control) and neither work. I have removed unique permissions and only made permissions inherited and no luck. I have googled myself to death over this and no solution.