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I, too, am running into the same issue. I am running XoopsFrameworks 1.10 and XoopsEditor 1.10 on XOOPS 2.0.16 with SmartSection (you have to edit the smartsection functions.php file to point to FCKed correctly). The editor generally works fine, except for dealing with images.
Per this post, I created the uploads/fckeditor/ directories as specified and checked the file permissions, I made sure the uploader was enabled in the configuration file. I also tried manually loading some image files via FTP into those directories. I see none of the images in the FCKeditor image manager, and can't upload a file or create a directory, either, with FCKeditor. I'm afraid that maybe I've not got something configured quite right, either, but for the life of me I can't figure it out, yet. Still working on it because I too want this to work.
I also tried making these directories in the smartsection module. I also tried copying the module files into the smartsection directory.
I wouldn't expect this to be that hard. I'm usually pretty good at following directions (such as those posted on the XOOPSEditor site for FCKeditor). I'm now to the point of frustration.
Mark