"The directory files/images/temp does not exist" error message

Many of us are on 'virtual hosts' and get this message because of a permissions issue.

We then create an 'image' directory structure with full permissions and try and point the image module there instead. When we try and do so, we get the following message 'The directory files/images/temp does not exist'.

The only solution (I know of) is to either create this directory structure BEFORE you install image, or to get the web host provider to fix this for us.