It was a simple case sensitivity issue. You must have already had a folder on your server named "Images" and the powercms code requires it to be named "images".
I renamed the folder to lower case and that appears to have fixed the problem.
Your friends over here at WebAssist! These Dreamweaver extensions will assist you in building unlimited, custom websites.
These out-of-the-box solutions provide you proven, tested applications that can be up and running now. Build a store, a gallery, or a web-based email solution.