I nthe iRite config.php file, the $Config['UserFilesPath'] and $Config['UserFilesAbsolutePath'] variables should be set to be site root relative. If you want to upload files to
then set those two variables as:
$Config['UserFilesPath'] = "userfiles/image/"
$Config['UserFilesAbsolutePath'] = "userfiles/image/"
If you still get the permission denied error message, try creating the folders "/userfiles/image/" manually at the root of you site and make sure to set the permission on the image folder to a minimum of 766 so that files can be uploaded.