Image Processing issue in CS4 when trying to batch save images

Goal: I'm trying to batch save my images to one of my internal hard drives. (All images are 8 bit).

I'm running CS4 on my mac (snow leopard). I have 4 separate hard drives. Here's how they are configured:

HD 1: start up/scratch disk
HD 2: holds all my applications (office, lightroom, photoshop, etc)
HD 3: holds all my images
HD 4: is a back up of HD 3

I can successfully save an image to HD 3 *manually*, however when I try to batch save PSD files to JPEGs using the ImageProcessor, it says "I am unable to create a file in this folder. Please check your access rights to this location" (then is spells out the path to where I've attempted to batch save)

HOWEVER, I figured out that I am able to use ImageProcessor to batch save my files to HD 1 and they batch save just fine, BUT I prefer not to save on HD 1 because that HD is soley for my scratch disk start up disk. I need to batch save them to HD 3 but for some reason CS4 has an issue with that regarding access rights. I've contacted Apple and we spent an hour verifying that all of my folders are READ AND WRITE and I'm signed in as administrastor and repaired disk permissions (of which it would only let me do so on HD 1, not HD 3) so there shouldn't be any access issues.

Can anyone help? I would be so appreciative because this seems to be a neverending issue.