I want to get SQL LOAD_FILE function to work and have read every single question/answer + documentation about this, but here is what\'s been happening.
I found out that it has to do with AppArmor. I disabled AppArmor for MySQL and it worked.
For people having the same problem, please read here: http://www.cyberciti.biz/faq/ubuntu-linux-howto-disable-apparmor-commands/