I'm running windows home server.
I had a older version 1.1 working with no problem. Now updated to new version and it's doing this. Any ideas? I just did a clean install and everything. I don't know what else it could want. I've tried setting the folders the way it wants and it's still being difficult.

Zenphoto Error
The album couldn't be created in the 'albums' folder. This is usually a permissions problem. Try setting the permissions on the albums and cache folders to be world-writable using a shell: chmod 777 D:\shares\Photos//cache/, or use your FTP program to give everyone write permissions to those folders.

Sure that the settings really applied? Maybe try to create a new "albums" folder.

Besides that, I don't know anything about Windows servers (and we don't support them specifcially in case it is a Windows specific problem.)