The directories should have been created with permissions allowing writing, but its possible your server is setup in a way that is not creating them how we expect. You can try modfying a few lines of code that should hopefuly fix the issue.
Anywhere a mkdir is called, try adding , 0777 to that line. For example, instead of mkdir('../Connections/'); use mkdir('../Connections/', 0777);
There are several files that will need this changed. If you can do a search in Dreamweaver for mkdir, you can modify each of those lines. I am not exactly sure why its not working for you out of the box, but try making these changes and see if it helps.
For now, you could just update the install files first and see if that allows it to work.