can't add or delete products or categories

[kayoz]

HI: I've just inherited a site which had Virtuemart installed. I've upgraded to the lastest version and am now trying to set up the shop.
When I try to add or delete or make any changes to the products or product categories I get this error:

JFolder::create: Infinite loop detected
Could not create path \logs to store log information. Check your folder \logs permissions.

I have no idea what this means or were the \logs permissions might be.

I can't find a virtuemart admin login or panel or module section which is mentioned on some of the forums.
I login via joomla login as a super user so it's not joomla permissions.

How do I fix or get around this?