When creating a gallery the bg_cached_resized_* files are not being created. I have checked the permissions of the module and the permissions of the folder that it is suppose to created at and they seem to be fine. It does in fact create the bg_picasa_orig_* folders with all the files in there.
I scrubbed the source code got all the names that they are suppose to be, resized the pictures myself and ftp'd them up there, and used that as a workaround for the one gallery.
I am using dreamhost as my provider, not sure if that is an issue.
I am sure I am not providing enough information, but after searching through known issues, I don't see where I can be going wrong. Every other similar issue seemed to have pointed to permissions, but I can't see how I have it wrong here.