Serviio-Ubuntu 14.04.1 LTS Brain Cramp

First, I apologize for people like myself who come from 20 years of Windows and find Linux to be like learning Swahili. So. after reading dozens of posts on Serviio installation I finally have the service running on Ubuntu 14.04.1 LTS. I am trying to get the Windows console to work. Service is running on server but when I run the Windows console I get:
"Cannot connect to Serviio server, it does not seem to be running. Exiting..." After reading the solutions I have checked the directory permissions which I believe are 777?

lafaverp@m8200:/etc/serviio$ ls -l
total 40536
[color=#FFFFBF]drwxrwxrwx 2 root root 4096 Aug 20 12:39 bin
drwxrwxrwx 2 root root 4096 Aug 20 12:32 config
drwxrwxrwx 2 root root 4096 Aug 20 12:32 legal
drwxrwxrwx 2 root root 4096 Aug 20 12:32 lib
drwxrwxrwx 2 root root 4096 Aug 20 12:32 library
-rwxrwxrwx 1 root root 3255 Aug 20 12:32 LICENCE.txt
drwxrwxrwx 2 lafaverp lafaverp 4096 Aug 20 12:50 log
-rwxrwxrwx 1 root root 10900 Aug 20 12:32 NOTICE.txt
drwxrwxrwx 2 root root 4096 Aug 20 12:32 plugins
-rwxrwxrwx 1 root root 3396 Aug 20 12:32 README.txt
-rwxrwxrwx 1 root root 40510 Aug 20 12:32 RELEASE_NOTES.txt
drwxrwxrwx 8 lafaverp lafaverp 4096 Mar 21 14:43 serviio-1.4.1.2
-rwxrwxrwx 1 root root 20701487 Mar 21 15:34 serviio-1.4.1.2-linux.tar.gz
-rwxrwxrwx 1 lafaverp lafaverp 20701487 Mar 21 15:34 serviio-1.4.1.2-linux.tar.gz.1
-rwxrwxrwx 1 lafaverp lafaverp 5 Aug 20 15:18 serviiod

Here is the derby.log: ( The highlighted lines are suspicious)

Wed Aug 20 12:50:23 PDT 2014 Thread[main,5,main] Cleanup action starting
ERROR XBM0H: Directory /etc/serviio/library/db cannot be created.
at org.apache.derby.iapi.error.StandardException.newException(Unknown Source)
at org.apache.derby.impl.services.monitor.StorageFactoryService$10.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at org.apache.derby.impl.services.monitor.StorageFactoryService.createServiceRoot(Unknown Source)
at org.apache.derby.impl.services.monitor.BaseMonitor.bootService(Unknown Source)
at org.apache.derby.impl.services.monitor.BaseMonitor.createPersistentService(Unknown Source)
at org.apache.derby.iapi.services.monitor.Monitor.createPersistentService(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.createDatabase(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.<init>(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection40.<init>(Unknown Source)
at org.apache.derby.jdbc.Driver40.getNewEmbedConnection(Unknown Source)
at org.apache.derby.jdbc.InternalDriver.connect(Unknown Source)
at org.apache.derby.jdbc.Driver20.connect(Unknown Source)
at org.apache.derby.jdbc.AutoloadedDriver.connect(Unknown Source)
at java.sql.DriverManager.getConnection(DriverManager.java:571)
at java.sql.DriverManager.getConnection(DriverManager.java:233)
at org.serviio.db.DBConnectionPool.newConnection(DBConnetionPool.java:186)
at org.serviio.db.DBConnectionPool.getConnection(DBConnetionPool.java:123)
at org.serviio.db.DBConnectionPool.getConnection(DBConnetionPool.java:149)
at org.serviio.db.DatabaseManager.getConnection(DatabaseManager.java:71)
at org.serviio.db.DatabaseManager.getConnection(DatabaseManager.java:64)
at org.serviio.update.dao.DBLogDAOImpl.isScriptPresent(DBLogDAOImpl.java:49)
at org.serviio.update.DBSchemaUpdateExecutor.updateDBSchema(DBSchemaUpdateExecutor.java:59)
at org.serviio.MediaServer.main(MediaServer.java:116)
Cleanup action completed
Wed Aug 20 12:50:23 PDT 2014 Thread[main,5,main] Cleanup action starting
java.sql.SQLException: Failed to create database 'db', see the next exception for details.
at org.apache.derby.impl.jdbc.SQLExceptionFactory40.getSQLException(Unknown Source)
at org.apache.derby.impl.jdbc.Util.newEmbedSQLException(Unknown Source)
at org.apache.derby.impl.jdbc.Util.seeNextException(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.createDatabase(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.<init>(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection40.<init>(Unknown Source)

And the serviio.log

2014-08-20 12:50:22,432 INFO [MediaServer] ------------------------------------------------------------------------
2014-08-20 12:50:22,433 INFO [MediaServer] Serviio DLNA media streaming server v 1.4.1.2 (rev. 3753eff81a2f+)
2014-08-20 12:50:22,433 INFO [MediaServer] Petr Nejedly 2009-2014
2014-08-20 12:50:22,433 INFO [MediaServer] http://www.serviio.org
2014-08-20 12:50:22,433 INFO [MediaServer]
2014-08-20 12:50:22,433 INFO [MediaServer] Java 1.7.0_65-Oracle Corporation
2014-08-20 12:50:22,433 INFO [MediaServer] OS Linux amd64 3.13.0-24-generic
2014-08-20 12:50:22,434 INFO [MediaServer] File encoding: UTF-8
2014-08-20 12:50:22,434 INFO [MediaServer] Headless mode enabled: true
2014-08-20 12:50:22,434 INFO [MediaServer] User: lafaverp
2014-08-20 12:50:22,434 INFO [MediaServer] User home dir: /home/lafaverp
2014-08-20 12:50:22,434 INFO [MediaServer] Temp dir: /tmp
2014-08-20 12:50:22,434 INFO [MediaServer] ------------------------------------------------------------------------
2014-08-20 12:50:22,576 INFO [WebServer] Socket buffer set to 65535 bytes
2014-08-20 12:50:22,578 INFO [RestletServer] Starting Restlet server (/rest) exposed on port 23423
2014-08-20 12:50:22,625 INFO [RestletServer] Starting Restlet server (/cds) exposed on port 23424
2014-08-20 12:50:22,625 INFO [RestletServer] Starting Restlet server (/mediabrowser) exposed on port 23424
2014-08-20 12:50:22,640 INFO [DBSchemaUpdateExecutor] Checking if DB schema needs to be updated
2014-08-20 12:50:22,661 INFO [DatabaseManager] Using DERBY database language
2014-08-20 12:50:23,052 WARN [DBConnectionPool] Can't create a new connection for jdbc:derby:db;create=true
java.sql.SQLException: Failed to create database 'db', see the next exception for details.
at org.apache.derby.impl.jdbc.SQLExceptionFactory40.getSQLException(Unknown Source)
at org.apache.derby.impl.jdbc.Util.newEmbedSQLException(Unknown Source)
at org.apache.derby.impl.jdbc.Util.seeNextException(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.createDatabase(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection.<init>(Unknown Source)
at org.apache.derby.impl.jdbc.EmbedConnection40.<init>(Unknown Source)
at org.apache.derby.jdbc.Driver40.getNewEmbedConnection(Unknown Source)
at org.apache.derby.jdbc.InternalDriver.connect(Unknown Source)
at org.apache.derby.jdbc.Driver20.connect(Unknown Source)
at org.apache.derby.jdbc.AutoloadedDriver.connect(Unknown Source)
at java.sql.DriverManager.getConnection(DriverManager.java:571)
at java.sql.DriverManager.getConnection(DriverManager.java:233)
at org.serviio.db.DBConnectionPool.newConnection(DBConnetionPool.java:186)
at org.serviio.db.DBConnectionPool.getConnection(DBConnetionPool.java:123)

So that's about all I can figure out. Any help would be greatly appreciated.

[zip]

Server didnt start, because the db cannot be created. probably write access rights are missing.

thank you for the quick response. Sorry to be dense, but doesn't 777 for the directory cover that? ... or not?

[zip]

yes it should. is it the same for the sub directories of the library folder?