Configuration problem

Could somebody please help me with this problem?
I've looked through the readme and searched this forum and have not found this issue anywhere else:

When I am on the last config page and click "Save Config ->" this is the error message I get:

Warning: mkdir() failed (No such file or directory) in /usr/local/apache/htdocs/gallery/classes/gallery/UserDB.php on line 35
Error: Unable to create dir:
Fatal error: Call to a member function on a non-object in /usr/local/apache/htdocs/gallery/classes/gallery/UserDB.php on line 99

These are my settings from the previous page:

/* Version */
$gallery->app->config_version = 30;

/* Features */
$gallery->app->feature["zip"] = 1;
$gallery->app->feature["rewrite"] = 0; // (missing GALLERY_REWRITE_OK -- it's optional)
$gallery->app->feature["mirror"] = 0; // (missing mirrorSites -- it's optional)

/* Constants */
$gallery->app->galleryTitle = "Gallery";
$gallery->app->pnmDir = "/usr/local/netpbm/bin";
$gallery->app->highlight_size = "200";
$gallery->app->zipinfo = "/usr/bin/zipinfo";
$gallery->app->unzip = "/usr/bin/unzip";
$gallery->app->use_exif = "/usr/bin/jhead";
$gallery->app->movieThumbnail = "/usr/local/apache/htdocs/gallery/images/movie.thumb.jpg";
$gallery->app->albumDir = "/usr/local/apache/htdocs/albums";
$gallery->app->tmpDir = "/tmp";
$gallery->app->photoAlbumURL = "http://127.0.0.1/gallery";
$gallery->app->albumDirURL = "http://127.0.0.1/albums";
// optional mirrorSites missing
$gallery->app->showAlbumTree = "no";
$gallery->app->cacheExif = "no";
$gallery->app->jpegImageQuality = "95";
$gallery->app->timeLimit = "30";
$gallery->app->debug = "no";
$gallery->app->use_flock = "yes";
$gallery->app->expectedExecStatus = "0";
$gallery->app->sessionVar = "gallery_session";
$gallery->app->userDir = "/usr/local/apache/htdocs/albums/.users";
$gallery->app->pnmtojpeg = "pnmtojpeg";

/* Defaults */
$gallery->app->default["bordercolor"] = "black";
$gallery->app->default["border"] = "1";
$gallery->app->default["font"] = "arial";
$gallery->app->default["cols"] = "3";
$gallery->app->default["rows"] = "3";
$gallery->app->default["thumb_size"] = "150";
$gallery->app->default["resize_size"] = "640";
$gallery->app->default["fit_to_window"] = "no";
$gallery->app->default["use_fullOnly"] = "no";
$gallery->app->default["print_photos"] = "shutterfly";
$gallery->app->default["returnto"] = "yes";
$gallery->app->default["showOwners"] = "no";
$gallery->app->default["albumsPerPage"] = "5";
$gallery->app->default["showSearchEngine"] = "yes";
$gallery->app->default["useOriginalFileNames"] = "yes";
$gallery->app->default["display_clicks"] = "yes";
$gallery->app->default["public_comments"] = "yes";

I've made the "albums" dir in htdocs readable/writable by the webserver user.
Any other ideas??

Thanks,
Nate