file manager empty

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Hi

I have installed concrete5 and the images in File Manager are missing.

Path in the browser properties does not exist

eg
/concrete5/files/thumbnails/7012/8536/9026/inneroptics_dot_net_starfish.jpg

the structure only goes to /concrete5/files

I found the missing files in the directory
/concrete5/concrete/config/install/files

copying them, using cp -p -R, to /concrete5/files seems to show them in File Manager but no changes can be made to them

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Additionally, if I attempt to add a new file I get the error

"Unable to copy file to storage directory. Please check permissions on your upload directory and ensure they can be written to by your web server."

I have tried 777ing the directories and searched the Forum and tried all options found.

the permissions on the directories seem to match other sites on my server that are also uploading files and modifying them.

e.g. 755 ftpname apache

nothing seems to work... any ideas? Would be appreciated