I've run into this issue where we have created a custom style (emailthumb) which is to be used when sending out email newsletters via simplenews. The thumbnail is based on 'thumbnail' style but is slightly bigger. It works fine when the image is being rendered as thumbnail or any other style but not the one custom style.
The permissions of the folders are all exactly the same (I've even tried 777 for emailthumb->public) as in thumbnail but there is no pictures folder being created. I then get a log error of access denied as the URL to the image as the folder doesn't exist.
I have tried changing the theme as per image style (imagecache) images are not being created but this has not worked.
Does anyone have any suggestions?
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