file upload issue

I’ve just installed WordPress 1.2 mingus on the my computer where I have apache/php and mysql installed. I’ve successfully installed wp, but I’m having issues with the file upload feature. In Options – Miscellaneous I’ve set the destination directory as “C:\apache\htdocs\wordpress\images” but after I save it, the \ are removed and the destination directory reads “C:apachehtdocswordpressimages”
When I then go to the “upload” section, I am given this message “It doesn’t look like you can use the file upload feature at this time because the directory you have specified (C:apachehtdocswordpressimages) doesn’t appear to be writable by WordPress. Check the permissions on the directory and for typos.”
What am I doing wrong?
Thanks!