this sounds like a permsions issue.
make sure that the images/ folder and all files and folders under it have the permisions set to 755.
also, in the webassist/cacjing/PG_CachedResize_Image.php file, change line 14:
$retVal = is_dir($pathname) || @mkdir($pathname, 0777);
to:
$retVal = is_dir($pathname) || @mkdir($pathname, 0755);
and line 360:
mkdir ($cachefolder,0777,true);
to:
mkdir ($cachefolder,0755,true);