Imagecache not showing thumbnails

Hi Everyone,

It looks like, imagecache is not generating thumbnails in my page.

I get these error messages:

* mkdir() [function.mkdir]: File exists in /home/myhome/public_html/mydir/sites/all/modules/imagecache/imagecache.module on line 601.

* Failed generating an image from photos/RK1_6224.jpg using imagecache preset product.

* Failed to create imagecache directory: sites/default/files/imagecache/product/photos

I have tried changing permissions to 777, followed other solutions like editing the .htcacess.

Unfortunately, it still not working. And new uploaded images dont generate thumbnails.

Please help, this page is live and our clients are unable to place orders without those photos.