4 Storage Setup - There was an error creating the directory structure within the storage directory.

System Info:
Windows Server 2003 running IIS 6.0.
PHP enabled and working.
MySQL database installed and working.

I have been working on this step for the past hour and I am getting really frustrated. This is the first time I tried using Gallery 2 so I don't know if it is a problem with my webserver or the package.

First off all, every step works well until I get to step 4. I tried creating a folder in the web root called g2data, another one called g2data_"random string", and I even created a folder outside the root web folder called g2data. Every time i get the error "Unable to verify that the storage directory is not." I click the checkbox to omit security check and i get the error "There was an error creating the directory structure within the storage directory."

I am the admin for the server and changed all the permission on all the folders to read/write. I even created the dir.php file and get this error "Warning: system() [function.system]: Unable to fork [pwd] in D:\wwwroot\gallery2\g2data_3215ass98vsad\dir.php on line 5"

Do you have any suggestion? Otherwise I am abandoning this project.