JFolder::create: Could not create directory
Plugin Install: Failed to create directory:
This can occur when trying to upload content or when installing themes/templates.
It's usually not a permissions issue per say but doing a 777 (which is very insecure) will fix it. But the real problem solution is that the owner of the files is different than the owner of the Apache process/server.
Eg. if your Apache is running as user "apache........