Folder not writable

Ive set my folder cache to chmod 777 and still recieve the error :

You do not have permission to write in this folder!

any idea what might be causing this?

also will this function allow the images to be printed within a page?
ive tried a few others and it seems to only work as a popup where no other code exist before the watermark function.

thx

On line 127 in the funtion save_photo() there a mistake has been made.

Change
header('Content-type: image/'.($this->ext == '.jpg' ? 'jpeg' : substr(1,$this->ext)));

to

header('Content-type: image/'.($this->ext == '.jpg' ? 'jpeg' : substr($this->ext,1)));

actually, change the whole funtion save_photo to:

function save_photo(){
imagesetthickness($this->photo,1);
if($this->browser) {
header('Content-type: image/'.($this->ext == '.jpg' ? 'jpeg' : substr($this->ext,1)));
header('Content-Transfer-Encoding: binary');
header('Content-Disposition: inline; filename='.basename($this->file));
header("Cache-control: private");
switch($this->ext){
case ".jpeg":
case ".jpg":
imagejpeg($this->photo, NULL , 85 ) or die ( 'no image' );
break;
case ".gif":
imagegif($this->photo) or die ( 'no image' );
break;
case ".png":
imagepng($this->photo) or die ( 'no image' );
break;
}
} else {
switch($this->ext){
case ".jpeg":
case ".jpg":
imagejpeg($this->photo, "$this->path$this->file", 85 ) or die ( 'You do not have permission to write in this folder!' );
break;
case ".gif":
imagegif($this->photo, "$this->path$this->file" ) or die ( 'You do not have permission to write in this folder!' );
break;
case ".png":
imagepng($this->photo, "$this->path$this->file" ) or die ( 'You do not have permission to write in this folder!' );
break;
}
}
$this->outfile=$this->path.$this->file;
$this->file=strrchr("/",$this->file);
}

Hy, i want to display image after mark with 100x100, how it?