1. Use "Add Categories" in the admin control panel to create your categories. DO NOT USE FTP to create new directories. This is very important since the directories where images and thumbnails are to be stored is automatically created by 4images when the category is created.
2. Once created, go to "Edit Categories" and move your mouse over a specific category in the list into which you want to upload new images. Your browser status bar will display a URL for the category. At the end of this url will be "?cat_id=" and a number. Make a note of this number as it corresponds to the directory names used by that category for storing images and thumbnails.