
A common issue we see here on the forums is that of 777 permissions. Director needs these permissions on the following folders at the root of the Director install: config, albums, album-audio, xml_cache. If these folders do not exist, create them. It is also advisable to give the app/tmp directory 777 permissions, as this will improve Director's performance.
If you continue to get errors saying Director does not have the proper permissions, here are some things you can try:
1) First and foremost, make sure that you have run the Director server compatibility test. At least of a third of permissions problems turn out to be related to safe_mode being enabled on the server in question. Director is not supported on servers that have safe_mode enabled.
2) Use your FTP program to set the permissions on the folders listed above. This is technically referred to as CHMOD. Consult your FTP program's documentation for more info on how to set permissions on remote folders.
3) If all else fails, and you are having a problem adding to an existing album, some users report success by just adding a new album. Seems sometimes the first album can somehow get stuck on the wrong permissions, but after adding a second album, things work fine for that album and any subsequent albums that are added.

