Thanks Jason! Weird! I had done a total site synchronization and yes that folder was not uploaded.
However, now when I go to insert an image I get the following.
Please Wait - loading...
The page title is File Manage - Kae's File Manager
and this URL
index.php?uicolor=%23eee&theme=webassist_v2&CKEditor=ContentValue&CKEditorFuncNum=4&langCode=en
Any ideas??