Hi, I'm rather new to both hunchentoot and lispworks, so please bear with me.
It seems to me that the function create-folder-dispatcher-and-handler uses the test (or (pathname-name base-path) (pathname-type base-path)) to see if base-path is indeed a directory. This fails on my system because both pathname accessors return :UNSPECIFIC, where base-path indeed names a directory.
TBNL> (values (lisp-implementation-type) (lisp-implementation-version)) "LispWorks" "5.1.2"
Funny thing is, when I do e.g. (pathname-name #p"/foo/bar") at the REPL, NIL is returned, where #p"/foo/bar" is cut'n'pasted from the error I get from hunchentoot. I had to modify the hunchentoot code to print the results from pathname-name to see that :UNSPECIFIC was returned.