I have the same problem aswell, getting the same error when trying to insert an image to a page:
"Error creating folder "" (Can't create directory)"
I have the test site on a sub directory on my server, www.camperzone.nl/test2www.camperzone.nl
is running an older version of cmsimple aswellwww.camperzone.nl/test
is running a older version aswell
So that means 3 cmsimple install on one server, the first 2 never had problems and have been running fine for over a year now.
I will try it on a local server tonight but I gues I will have the same problem.
Where can I find how I need to set the permissions for the different folders in my cmsimple dir on the web server..??