ASP.NET C# - Create upload directory on the fly?

Question

    public class UploadHandler : IHttpHandler
    {
        public void ProcessRequest(HttpContext context)
        {
        ...

        // Create the directory if needed...
        if (!Directory.Exists(uploadDir))
        {
            System.Security.AccessControl.DirectorySecurity ds = new System.Security.AccessControl.DirectorySecurity(RivWorks.AppSettings.UploadRoot, System.Security.AccessControl.AccessControlSections.All);
            Directory.CreateDirectory(uploadDir, ds);
        }
        ...
    }

I have the above snippet of code for a ASHX file and it works fine in my local environment. As soon as I push it to a server environment I don't get an error, it appears to have built the directory, yet when I check for it - well - it is not there. When I run it via a FLEX app we are getting this error:

Error #2038: File I/O Error. URL: http://%5Bourdomain%5D.com/UploadHandler.ashx?CompanyID=d229cc80-ca96-4a8a-992c-80c94ac2c6b4

Is there anything I am missing?

UPDATE:

1. I can create files anywhere on disk
2. I cannot create directories anywhere on disk.

I get this error now when trying to create a directory:

The process does not possess the 'SeSecurityPrivilege' privilege which is required for this operation.

Answer 1

Have you checked that your program has the correct access rights to the relevant directories on the server?

Answer 2

Is the site runs with identity impersonation=true? If so it runs under your credentials/authorization in your environment