pls add your PHP-, WB- and Bakery-Version
i understand, that the thumbfolder doesnt exist, correct?
bakery add the folders images && thumbs as subfolder of the folder "bakery" inside of your media-directory when you save the bakery main general settings
if you add a new item, bakery add two new, empty folders with the name item + item_id (for example: item2, item3 etc) in the folder bakery/images && folder bakery/thumbs. can you confirm this?? it cannot be a permission problem, because, it works for the image-folder in the same main directory
if one of this two paths are not reachable, bakery rebuild (normalize) this path to the item-folders like item2, if you upload a new picture
pls add a new item for a test and check this folders via ftp or in your media administration.
P.S.: maybe, its important... do you change the name of your media-directory (possible in WB-Options)? default name is media if YES, maybe a hardcoded path to build the folders is a problem, but check it first