Hello, well the folder that you wish to use appears to be the one that will be used from the error irk you provided...it just means it will create an additional folder automatically named '.thumbnails' which will be used for the thumbnail images in the KFM image uploader interface. So your main image will be saved to your exhibitionimgs folder and then a duplicate smaller version of that image file will be saved in the .thumbnail folder. So you just need to change the folder read/write privileges for your folder via changing the CHMOD that I explained and provided links to explain how-to in my previous post....I cannot remember which specifically you change it to as not at my computer at the moment as typing via my phone. But let me know if you still require help on this and when I'm back at my computer will give more help.
Chris