Wp-Ecommerce not creating needed folders on server with Mu

Here's my issue...

I'm trying to use WP-Ecommerce with Mu.

When going to add a product, I get a message like this:

The following directories are not writable:
/home/hotprod/public_html/wp-content/blogs.dir/7/files/wpsc/downloadables/
/home/hotprod/public_html/wp-content/blogs.dir/7/files/wpsc/previews/
/home/hotprod/public_html/wp-content/blogs.dir/7/files/wpsc/product_images/
/home/hotprod/public_html/wp-content/blogs.dir/7/files/wpsc/product_images/thumbnails/
/home/hotprod/public_html/wp-content/blogs.dir/7/files/wpsc/category_images/
You won't be able to upload any images or files here. You will need to change the permissions on these directories to make them writable.

Now, blogs.dir is chmod to 777 and this exact same issue occurs on 2 seperate servers.

I can manually create the /7/files/wpsc/ and everything works fine.

Supposedly, this is working for others in Mu here on this forum, so if you have a solution for this, I will be more than appreciative.

Keith