[Plugin: Googe-News-Sitemap] Error Message sitemap-news.xml doesn’t exist

Error when trying to create sitemap. Error: there is a problem with sitemap-news.xml. It doesn’t exist or is not writable. In an attempt to fix I used a blank .xml file and renamed it and granted full permissions. Receiving same error message

http://wordpress.org/extend/plugins/google-news-sitemap/