OK! Problem solved. After fooling around some more I have found my problem. Turns out your assigned Torrent folder name cannot contain spaces! In my infinite wisdom I created a new folder to use for bittorrent and I called it "Torrent files". Well, as soon as I substituted the space with an underscore it all started working. Kinda odd because the system creates folders with spaces itself so you wouldn't think that it would be so picky. Oh well, I should have found this earlier.