I think I got it working but I'm not to sure yet. It doesn't seem to create sub directories but it should work.
I can even set limits on just about everything based on what group your part of, so staff get a lot more space. This is of course to help prevent to much abuse. But there is still plenty of space for any members to use trust me. And in the rare occasion you may need more I'm sure we can work something out.
And it may work right but because I'm admin I get to break the limitations of everyone else(like being able to upload anywhere I want. Oh! And the image above was done through this so ya it makes the thumbnails too.