Error creating folder

I have followed the documentation closely but receive this error:

Error Creating Folder "userfiles/image" Can't create userfiles directory

$Config['Enabled'] = true ;
$Config['UserFilesPath'] = 'userfiles/' ;
$Config['UserFilesAbsolutePath'] = 'userfiles/' ;

I have a folder called userfiles in my directory and a folder called images in that directory.

It's hard to find info on this, any help would be great.