ERROR: Cannot write to thumbnail image destination directory

hi i know this has been covered in other post but i still have problems.

i am running apache 1.3 and php version 4 on nt 4 with service pack 5

the problem i get it that even when i try to upload a image i get the error

ERROR: Cannot write to thumbnail image destination directory

i have changed the permission to give everyone full control but i still get the above error.

i was wondering if there is anything in the apache config that my prevent me from writting to image directory.

thankyou in advance for any help.

btw. i think phpshop is awsome i have played with it quite a bit and added several modules but i was never able to solve the above problem.

this is a clean default install i.e i have not added any thing to it.