i checked the file paths and they are correct based on what you stated the "~" means. i still get a security error. below is my paths. in IIS the DotNetNuke folder is my root app folder. so the filespath should be correct by default install, the folder path i modified and copied the sample folder over.
FilesPath = "~/DesktopModules/dotnetgallery/DotNetGallery_Files"
FolderPath = "~/DesktopModules/samplefolder"
any other suggestions?