Uploading to individual user folders %u or %n not working ?

When uploading images using ckfinder, It doesn't seem to matter what path I set in "Path to uploaded files:" %b%f%u/. When uploading with ckfinder it places the images in to : "/sites/default/files/images" . What am I doing wrong ?

Update: figured this out. Had to provide write access at file level (chmod) at../files directory level. Everything works as expected.