path error. Is controlled by the path settings in the store and classifieds.
Go to Admin -> Server Settings
Find the Sources Path.
Make that your classifieds path just remove Sources and make it have store or classifieds depending on the modification.
O.k, I think I'm having another issue. For some reason or another when trying to upload pics in both the store and classifieds again the images are not showing but only this time there are no errors being shown anywhere but the image won't show or load.