VirtueMart JFolder::create: Could not create directory

This seems to be a common error. Quite often it can be fixed by the following:

Manually edit your configuration.php file under Joomla home direcory, change:

From:
var $tmp_path = '/home/public_html/your_name/tmp';

To:
var $tmp_path = 'tmp';

Also make sure:

var $ftp_enable = '0';

FTP layer seems to create some problems.

If this doesn't fix your problem, then you should read trhough this article.

Good luck :)