[SOLVED][Drupal ImageCache] ImageCache folders not being created after presets were created

Applying the following patched imagecache_create_url function will fix the issue.

function imagecache_create_url($presetname, $filepath, $bypass_browser_cache = FALSE, $absolute = TRUE) {
  $args = array('query' => empty($bypass_browser_cache) ? NULL : time());
  $file_directory = file_directory_path();

  // Determine the path of the derivative inside the files directory.
  $derivative_path = 'imagecache/'. $presetname .'/'. _imagecache_strip_file_directory($filepath);

  // Then construct a full path and see if anyone wants to alter it.
  $altered_path = $old_path = $file_directory .'/'. $derivative_path;
  drupal_alter('file_url', $altered_path);

  // If any module has altered the path, then return the alteration...
  if ($altered_path != $old_path) {
    // ...but use url() so our $bypass_browser_cache parameter is honored.
    return url($altered_path, $args);
  }

  // It was unchanged so use the download method's prefix.
  $prefix = array(
    FILE_DOWNLOADS_PUBLIC => $file_directory,
    FILE_DOWNLOADS_PRIVATE => 'system/files',
  );
  $path = $prefix[variable_get('file_downloads', FILE_DOWNLOADS_PUBLIC)] .'/'. $derivative_path;

  // Temporarily turn off clean urls setting by default.
  global $conf;
  $bk = $conf['clean_url'];
  $conf['clean_url'] = 0;

  $rs = url($path, $args + array('absolute' => $absolute));

  // Restore clean urls setting.
  $conf['clean_url'] = $bk;

  return $rs;
}

Hope that helps.