I did not realize you where using PowerCMS 1, I thought this was for PowerCMS 2.
in powerCMS1, the remote root and local root where set in the WA_Global/WA_Globals.php file.
make sure the $WAGLOBAL_localRoot and $WAGLOBAL_remoteRoot are set to powerCMS
$WAGLOBAL_localRoot = "/powerCMS/"; //relative path to your PowerCMS files on your local testing server.
$WAGLOBAL_remoteRoot = "/powerCMS/"; //relative path to your PowerCMS files on your remote server.