An error occurred while attempting to create a folder for your files.
As Subah points out.
AdminCP => vBGallery => Modify Settings
- Title, URL's, & Paths
-- Files Path
Make sure this folder has read / write permissions.
- CHMOD 777. (some servers may need to be 755)
If you have moved servers or restored your gallery the sub folders may also need to be CHMOD 777.
If you need a ftp client to do this try http://winscp.net
A person here on the site moved their web site from one server to another. During the move their gallery's upload folder and sub folders changed ownership and CHMOD went to 644. I needed a recursive FTP client to CHMOD 1000's of sub folders with about 300,000 files from 644 to 777. WinSCP worked for me.