1.3.3 to 1.4 upgrade problem

I am trying to upgrade from gallery 1.3.3 to 1.4. I followed the instructions for FTP upgrade and completed the config without any errors. When I click to save the settings, I get the following messages:

Warning: mkdir(): No such file or directory in /home/birchaut/public_html/pic-gallery/classes/gallery/UserDB.php on line 39
Error: Unable to create dir:
Fatal error: Call to a member function on a non-object in /home/birchaut/public_html/pic-gallery/classes/gallery/UserDB.php on line 104

When I go to the gallery I get the following message:

Gallery needs Reconfiguration

Your Gallery configuration was created using the config wizard from an older version of Gallery. It is out of date. Please re-run the configuration wizard!

I do as instructed and complete the configuration without problems with the exception of the same issue when I try to save the settings.

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Give us your Gallery/webserver information to get a faster answer.
Get this information from the PHP diagnostic (in the configuration wizard).
Gallery URL (optional but very useful):
Gallery version: 1.3.3 > 1.4
Apache version: Apache/1.3.28
PHP version (don't just say PHP 4, please): 4.3.3
Graphics Toolkit:
Operating system: Linux server.securesite5.com 2.4.20-20.7 #1 Mon Aug 18 14:56:30 EDT 2003 i686
Web browser/version (if applicable):