Not a big deal glad its working I just dont see how a php action and a mysql action would have anything to do like that. I mean if the mysql action fails then we dont create a directory and then again you dont have a category created. For you to get the error you have above an entry would have to have been processed in mysql meaning you created the category through the script and it was entered fine but the php directive to create the cat directory failed which is a php issue with a bad path or something. Thats why I stated what I did.
Now unless you created that category directly in mysql to test things that would explain the issue