@COE Typically if the permissions on the /images directory get messed up you can reinstall FOG and it will fix the permissions.
If you run the chmod 777 /images that will make the directory world writable but not the existing files / folders under that directory. If you use chmod -R 777 /images it will change everything under that directory to world writable.
But before you do that, the linux user fogproject should have read write access to /images. The password for that user is found in the hidden file /opt/fog/.fogsettings That is the user account fog uses to move files around while imaging.