OK, I take it all back, I set the directory up lastnight, and this morining it is now working, I now have my images and files going exactly where I need them too go.
Hmm. I am bewildered.
I do have a related question though, per the above mentioned tutorial for File Storage it states this: Use a directory inside the DocumentRoot (relative to Tiki dir for example) and prevent listing the directory using .htaccess file or other configuration on your webserver.
That is my method I think, using a directory in the DocumentRoot. I am assumming the DocumentRoot is the directory Tiki is installed in.
Is there any guidance on how the .htaccess file should look? thanks again folks.