FatalError since upgrade to CS5

Question

Hi everyone,
I'm having trouble with a script that served me well for a couple years, but since I upgraded to CS 5, I'm getting the error below:
FatalError: General Photoshop error occurred. This functionality may not be available in this version of Photoshop.
- <no additional information available>
It seems like the script can't properly create the folder in which it should save the images. I also noticed that my error log isn't created as well.
I've try with some folders manually created and it ran just fine...
So I think this point to permission issues, but I'm not sure... or perhaps a change between CS3 and CS5 is messing things up... but I've read the CS5 doc and it looks like my script shoud still run properly...
Here's the code (the part that seems to fail is the folder creation in the exportImage function)
// export settings
function exportImage(quality,width,height,suffix,extension)
    var saveOptions = new ExportOptionsSaveForWeb();
           saveOptions.quality = quality;
           saveOptions.format = SaveDocumentType.JPEG;
    var targetWidth = new UnitValue(width,"px");
    var targetHeight = new UnitValue(height,"px");
    docRef.resizeImage(targetWidth,targetHeight);
    //Bunch of names lookup to figure out the image orientation
    try
        if (docRef.name.indexOf ("000", 0) != -1 || docRef.name.indexOf ("315", 0) != -1 || docRef.name.indexOf ("045", 0) != -1)
            var     fileName     = docRef.name.substring(0, 11);
        else
            if (docRef.name.indexOf ("135", 0) != -1 || docRef.name.indexOf ("180", 0) != -1 || docRef.name.indexOf ("225", 0) != -1)
                var     fileName     = docRef.name.substring(0, 11) + "d";
            else
                if (docRef.name.indexOf ("d", 11) == -1) // Check for already flagged "back" images
                    var     fileName     = docRef.name.substring(0, 11);
                else
                    var     fileName     = docRef.name.substring(0, 12);
        var folderName = docRef.name.substring(0, 7);
        var fileFolder = new Folder(outputFolder+"/"+folderName); // Create folder named as fileName
        if(!fileFolder.exists) fileFolder.create();
        var jpgFile = new File(fileFolder + "/" + fileName + suffix + extension);
        if (!jpgFile.exists)
            docRef.exportDocument(jpgFile, ExportType.SAVEFORWEB, saveOptions);
    catch (e)
         alert("Error encountered when saving the image (" + fileName + suffix + extension + ")! \r\r" + e);
// Main instructions
var startDisplayDialogs = app.displayDialogs;     // Save the current preferences
app.displayDialogs = DialogModes.NO;     // Set Photoshop to use pixels and display no dialogs
app.preferences.typeUnits = TypeUnits.PIXELS;
var inputFolder  = Folder.selectDialog("Select the folder containing the source images")     // ask the user for the input folder
var outputFolder  = Folder.selectDialog("Select a folder for the output images") // ask the user for the output folder
// see if we got something interesting from the dialog
if (inputFolder != null && outputFolder != null)
    var fileList = inputFolder.getFiles();
    // get all the files found in this folder
        for (var i = 0; i < fileList.length; i++)
            try {
                // open each one in turn
                if (fileList[i] instanceof File && fileList[i].hidden == false) // The fileList includes both folders and files so open only files
                    var     docRef                     = open(fileList[i]) // get a reference to the new document
                    var     docWidth                 = docRef.width.value;
                    var     docHeight                 = docRef.height.value;
                    var     bgColor                    = new SolidColor(); //set bgColor to white
                            bgColor.rgb.red     = 255;
                            bgColor.rgb.green     = 255;
                            bgColor.rgb.blue     = 255;
                    app.backgroundColor    = bgColor;
                    //resize canvas to a 1:1 ratio
                    if ( docWidth > docHeight )
                        docRef.resizeCanvas(docWidth,docWidth);
                    else
                        docRef.resizeCanvas(docHeight,docHeight);
                    //Make images...
                    exportImage(60,300,300,"",".jpg"); // Large image
                    if (docRef.name.indexOf ("d", 0) == -1) // Large back image
                        exportImage(60,75,75,"_th",".jpg"); // Thumbnail image
                    docRef.close(SaveOptions.DONOTSAVECHANGES);
            catch (e)
                var file    = new File('~/ps-error.log');  //this is your error report!
                file.open('e');
                file.writeln (e);
                file.close();
//Run the job   
app.displayDialogs = startDisplayDialogs

Answer 1

here the part that fails::
     var folderName = docRef.name.substring(0, 7);
     var fileFolder = new Folder(outputFolder+"/"+folderName); // Create folder named as fileName
        if(!fileFolder.exists) fileFolder.create(); //Return TRUE, so looks like all is well but...
        var jpgFile = new File(fileFolder + "/" + fileName + suffix + extension);
        if (!jpgFile.exists)
            docRef.exportDocument(jpgFile, ExportType.SAVEFORWEB, saveOptions); // throw an FatalError!