Please be more specific.
File storage works fine. The default folders in .LRN are not allowed to be deleted. It assumes those are "required" and revokes permission. A site wide administrator should be able to delete them.
The comment I made on the bug explains what is wrong. If someone who understands what that table is for can fix it that would be good, but its unrelated to the file-storage package itself, but the dotlrn integration.