PHP session issue

I have a new server setup. I have move some joomla sites and ecommerce template website. I think i am having a server problem with sessions being stored correctly, as my login for ecommerce keeps redirecting based on sesson problem. Also, i have have an issue with joomla 2.5 installation hanging after language selection screen. The server is new AWS instance running plesk 11 on centOS. error from log : [Fri Aug 24 07:26:50 2012] [warn] [client [login to view URL] mod_fcgid: stderr: PHP Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct (/var/lib/php/session) in Unknown on line 0