I had the same problem ‘Directory Not Valid or Not Accessible ‘ using wp 2.5.1 and podpress 8.8.
Here’s the fix…
1. Make sure your wp-content folder has the permission 755 and your mp3 files are set to 655.
2. Create a php.ini file and place it in your root directory. The php.ini file should contain the following:
memory_limit = 50M
post_max_size = 20M
file_uploads = On
upload_max_filesize = 192M
3. Visit http://mdobrev.us.hive-net.net/podpress and download the podpress_admin_class.php.zip file. Unzip it and replace the podpress_admin_class.php file in your /wp-content/plugins/podpress folder.
That’s it…a warm thank you to MC Lueppers and Dan in the Mightyseek.com forum for the php file rewrite.