"Warning: No images in specified directory. Please ...

Hi,

i am working on a website on localhost mode. I have two different local sites, 1 is made only to test the extensions before installing them in the final site. I installed SIGE on my "tests" site, it works perfectly so i decide to install it in the main site, but it doesn't work there, keeps giving me: "Warning: No images in specified directory. Please check the directoy!"
The directory is properly set up, but it doesnt works. I've tried to put the gallery folder in the root and also tried in /images but doesn't work at all.
Have to say that the 1st time i tried to see the gallery opening the proper article in the frontend something wierd happened, the template was charged and the menus and modules, but the content was blank, after i refreshed i got this warning message.
I have been fighting with it for hours... any idea about what might be going on here?

Edit: I also uninstalled the plugin and installed again, several times...

Thanks

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