--- file_service.old	Fri Apr  9 15:49:42 2010
+++ file_service.inc	Fri Apr  9 16:06:13 2010
@@ -80,7 +80,9 @@
   $dir = dirname($file->filepath);
   // Build the destination folder tree if it doesn't already exists.
   if (!file_check_directory($dir, FILE_CREATE_DIRECTORY)) {
-    return services_error("Could not create destination directory for file. $dir");
+    if (!@mkdir($dir, 0775, TRUE)) {
+      return services_error("Could not create destination directory for file: $dir.");
+    }
   }
 
   // Update file object as necessary