So do you still have an error to create the "multisites" link inside the slave1 subdirectory ?
If yes, have you checked that the directory does not exists physically in the /multsites/slave1 directory.
Theorically, you should have a link in /multisites/slave1/multisites that point to /multisites.

Edwin, I corrected the error message as I stated in my second post under this topic, what happens though is when I specify a "template" directory with "special copy" on the folder tab it only gives a link to the template directory, if I use "copy" it seems to create the directories I ask for as in the "template" and the "template/image" but yet when I edit the template css file and make the name change to the logo for the website it still seems to be looking at the Master site template/image folder?