Error adding product with image subdir

[Alta]

This is a new install downloaded software today.
I'm getting this error when adding a product. This isjust the start of the error. It lists lines and lines of problems.

FailedhpThumb() v1.7.9-200805132119 in file "phpthumb.class.php" on line 216 phpThumb() v1.7.9-200805132119 in file "phpthumb.class.php" on line 216 setSourceData() setting $this->rawImageData (90671 bytes; magic="ÿØÿà" ( 0xff 0xd8 0xff 0xe0)) in file "phpthumb.class.php" on line 252 file_exists() = 0 in file "phpthumb.class.php" on line 1105
...

The last line is
RenderToFile() failed because "/mydir1osmax/images/thumbs/" is not writable in file "phpthumb.class.php" on line 531

The images directory is 777.
What's up with the images directory?
The installation seems to not have created the images/subdirs.
What should they be?

[ridexbuilder]

Need more info.
Is this a local PC installation or an install on a server? (Detail).
Wrap code using the forum tools (go Advanced to access them).
phpThumb requires GD library (optionally imagemagick) - do you meet that pre-requisite?
phpThumb easily handles images of 90671 bytes, so maybe your Webserver/PHP environment has some enforced limitation eg. HTTP uploads.

There should be no directory in your installation with 777 permissions - 755 at most.
Images: banners, categories, default, flags, icons, images_big, infobox, mail and thumbs
If they don't exist after running the install, then it looks as though either your download is corrupt or your environment is setup incorrectly.

[Alta]

Sorry for not getting back sooner.

We've decided to not go with OSCommerce but to update our current software. After a daunting search for the right package, we decided that it's more cost-effective to bring our current software up to date rather than learning a new one and installing features that we require.

You really need to get rid of that offensive "smiley". That turns me away from your software.

[ridexbuilder]

We've decided to not go with OSCommerce.

Considering it appeared that you were trying osCmax, that doesn't surprise.

You really need to get rid of that offensive "smiley". That turns me away from your software.

Not a clue what you are on about. The software is everyone's - it's freely available and free to use.