I am having issues with ASP Smart Image Processor 2.5.6

I am getting the following error:
Image Processor: Error executing the action SaveJPEG
Could not write the file 'C:\...\filename.jpg'. Make sure that ASP.NET does have write permissions in the folder.

The image does upload to the correct folder, so permissions isn't the issue. When I remove the Smart Image Processor code and just use Pure ASP upload, the file uploads fine.

I am using the image processor to resize the image.

Any ideas?