A TimThumb error has occured

hello,

i seem to have a sticky issue.

none of my images that are thumbnails seem to be working and I am getting this error when I ‘view image in new window’ ::

Warning: touch() [function.touch]: Utime failed: Permission denied in /hermes/bosweb/web111/b1110/ipg.yorestudioscom/elumfoundation/wp-content/themes/shotzz/timthumb.php on line 199

Warning: Cannot modify header information – headers already sent by (output started at /hermes/bosweb/web111/b1110/ipg.yorestudioscom/elumfoundation/wp-content/themes/shotzz/timthumb.php:199) in /hermes/bosweb/web111/b1110/ipg.yorestudioscom/elumfoundation/wp-content/themes/shotzz/timthumb.php on line 424
A TimThumb error has occured

The following error(s) occured:
Could note create the index.html file – to fix this create an empty file named index.html file in the cache directory.

Query String : src=http%3A%2F%2Fwww.yorestudios.com%2Felumfoundation%2Fwp-content%2Fuploads%2F2012%2F05%2FLRF-Home-Page-Banner-4.jpg&h=350&w=980&zc=1
TimThumb version : 2.8.5

please help!

any insight would be much appreciated.