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Chances are it's a Permission Setting. Are you in XP Pro or Home? You will want to make it so that the internet User or the PHP user can write to that Folder. To do this in XP Pro you right click on the folder, select Security and add the Internet User and/or the PHP User (I don't think there is one so it just might be the internet user). For Pro you might have to be apart of a Domain as well. For Home, I'm not to sure on how you would do this seeing as there is no security tab. Look up the Command Calcs It works with File Permission and you will probably be able to take care of it with that.
Basically you just have to add the Internet User to the Permissions.
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