My site is on godaddy.com. I have set the permissions as stated in the documentation. Everything seemed OK. I logged into the admin area of the site and added a category with an image to it. When I saved it an unexpected error occurred i.e. "We're sorry, an internal error occurred." I went to the system/log and saw that access to the image path was denied. I went back to the category I just made and I could access the category. Well that's strange. I created a new category and the same thing happened.
I then entered a new product. Saved it. Everything is ok, except when I uploaded an image and added it to the product. I got an error i.e. "We're sorry, an internal error occurred." I got back to the dashboard and clicked on manage products and got the error again. I went to the system/log and saw that access to the image path was denied again. This time I logged into my hosting service; looked at the permissions for the file that was denied; it had the write permission, but I was still getting the error when I refreshed the manage products. I then gave the file full control and refreshed my manage product page in nopcommerce and it worked. I then removed full control permission and it still worked. I have and can replicate this weird problem. Does anyone have an explanation and maybe a solution?