creating a directory before using cffile

I'm having trouble using cffile right before I create a directory. I am using the cffileupload tag and my url attribute is a page that has the following code. Basically the code below creates a new directory and uploads all the images to that directory. However, it fails on the 2nd upload and i get a 500 error in the cffileupload flash object. However, if I hardcode the directory path, they all upload fine. Anyone know why I am having this problem?

<!--- User will upload all the images to a temp directory based on date and time --->

<cfset uploadFolderPath = "C:\ColdFusion9\wwwroot\MyApplication\uploads\" />

<cfset date=DateFormat(Now(),'mm-dd-yyyy_') />

<cfset time=TimeFormat(Now(),'hh-mm-ss') />

<cfset newFolderName = "upload_" & date & time />

<cfset newFolder = uploadFolderPath & newFolderName />

<cfdirectory action = "create" directory="#newFolder#" />

<cffile action="uploadall" destination="#newFolder#" nameconflict="makeunique" />