Video file upload errors with Cloud FIles
Found the issue, it was with the Cloud Files module (I'm using a dev version) and I've submitted a fix to the author. 

The Cloud Files code was creating directory entries in the db for all of the intervening directories when mkdir() was called. The mkdir() code in the file stream wrapper was always trying to insert a row into the cloud_files table. My guess is that it was assumed other modules would check for the existence of a directory before creating it, so he didn't want to do a redundant check. However, I think that other code would usually just blindly call mkdir() because if the directory already existed and it failed there wasn't any real downside to it.