the image module directory generates a missing directory message rather than a wrong permissions message
chmod 777 path/files/image/temp [or any component which exists but has a 775 mode] fixes the permissions problem, but the "missing directory" message is misleading, as a mkdir
is not required, only a chmod perms
Comments
Comment #1
devin carlson commentedFor problems relating to the image module, please file an issue with the module itself (http://drupal.org/project/image).