This is still a problem and a big one.
I am currently helping test PTG, but I was having a lot of trouble. Turns out it needs to make folders for cache operations. The problem 100% is that for whatever reason Blockland in unable to create new folders, when all the folders are already there so all Blockland needs to create is the file itself, everything is fine and dandy. I PM-ed Badspot when I first created this topic, but nothing.