? temp.patch
Index: services/file_service/file_service.inc
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/services/services/file_service/Attic/file_service.inc,v
retrieving revision 1.1.2.7.2.4
diff -u -p -r1.1.2.7.2.4 file_service.inc
--- services/file_service/file_service.inc	26 Oct 2010 17:58:39 -0000	1.1.2.7.2.4
+++ services/file_service/file_service.inc	26 Oct 2010 23:33:46 -0000
@@ -80,7 +80,9 @@ function file_service_save($file) {
   $dir = dirname($file->filepath);
   // Build the destination folder tree if it doesn't already exists.
   if (!file_check_directory($dir, FILE_CREATE_DIRECTORY)) {
-    return services_error("Could not create destination directory for file.");
+    if (!@mkdir($dir, 0775, TRUE)) {
+      return services_error("Could not create destination directory for file: $dir.");
+    }
   }
 
   // Update file object as necessary