MP3 and podcast directory issue

I’m so close to getting it to work but it doesn’t. Under General Settings of Podpress if I use the suggested directory for both the URL directory and absolute path then when I go to post I’ll see a drop down of all my podcasts but when I post it, it gets stuck on loading and wont play the file.

Now when specify what the actual link is to the media files, it would show the drop down box and I have to specify the URL and finally then will the player play the file.

I have set my permalinks to default and turned off statistics and it still wont work. Any other ideas? I don’t mind manually adding the files but will it affect the iTunes side of it?

http://wordpress.org/plugins/podpress/