This is probably the first time I’m trying to upgrade WordPress using the automatic upgrade option available in the WordPress Admin Dashboard. And doing so showed this error message:

Searching the Web lead me to the following thread at WordPress Forums:
WordPress › Support » Download failed.: Could not create Temporary file
What did actually work was setting the permissions (CHMOD) for wp-content folder to 777, using the FTP client (FileZilla) I use. Once WordPress was upgraded successfully, I changed the permissions back to 755.

This issue seems to occur only in Apache servers where Safe_Mode is On. You can read about that at Download failed – Could not create Temporary file | shantopagla.
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a simple solution that worked for me… just crate a folder and call it “tmp”. create this folder in the wordpress root directory. that solved it for me :-)
Thanks it solved my problems to update the plug ins manually via ftp.
Thank you !
Thanks for the tip. I was having the same problem and used your solution to get around this issue.