I recently moved this wordpress installation from a reseller cpanel installation to a virtual private server (VPS) using a cpanel full backup and restoration. Everything went smoothly until I decided to update wordpress and was greeted with the following message.
To perform the requested action, WordPress needs to access your web server. Please enter your FTP credentials to proceed. If you do not remember your credentials, you should contact your web host.
The solution was to change the configuration of PHP and SuExec to have suphp act as the PHP 5 Handler instead of dso.
Confirmation that the setting has been changed.
Refreshing the upgrade page where the credential error occurred and within seconds the upgrade has been performed!