Images are not showing – Image link is pointing to directory that does not exist

I am using classified Theme from templatic, that uses timthumb
My problem is i am uploading logo , its not showing.

I create ad and add image and it doesn’t show.

If i check the link of the image, its pointing to

https://Mydomain.ca/wp-content/themes/Classifieds/thumb.php?src=https://mydomain.ca/files/products_img/1376927249_KARCHER_KB4040_PRESSURE_WASHER.jpg&w=220&h=200&zc=1&bid=1

Where as the image are loaded in
https://mydomain.ca/wp-content/themes/Classifieds/thumb.php?src=https://mydomain.ca/uploads/products_img/1376927249_KARCHER_KB4040_PRESSURE_WASHER.jpg&w=220&h=200&zc=1&bid=1

Mean they are loading in uploads folder, and there is no FILES folder where the image link is pointing when i added via post an Ad.

I have updated content of thumb.pnp to latest one – i have set the allowed all site to TRUE – i have given 777 permission to cache folder.

Still No luck.

please help as to how i can fix it. where is editor i need to fix it, so when i post an ad , image points to uploads folder as the files are loading there fine.