Rebooting won't matter. Perhaps the problem is you don't have the rights to write to the podcasts folder.
Go to terminal and enter the command:
Code:
cd Music/iTunes
Do the ls -l command and see if the entry for iTunes Media starts drwxr-xr-x
If there is no iTunes Media listed, then execute:
Code:
chmod u+rwx .
and start iTunes and try again.
If iTunes Media is present but appears other than drwxr-xr-x, execute:
Code:
chmod u+rwx iTunes\ Media
(note there is a single space after the backslash)
and start iTunes and try again.
If it still doesn't work, start the terminal again and issue the command:
Code:
cd Music/iTunes/iTunes\ Media
and do the ls -l command and see if the entry for Podcasts starts drwxr-xr-x
If it is other than drwxr-xr-x issue the command
Code:
chmod u+rwx Podcasts
otherwise issue the command
Code:
chmod -R u+rw Podcasts
If it still doesn't work, I'd just rename the iTunes folder and have iTunes create it anew. Then you could import any existing music files. But you would lose any playlists and other information (ratings) you have.