Ok, well to create a folder you use the mkdir() function - to see if it already exists use file_exists:
$Directory = 'Uploads'
mkdir($Directory) or die('Cannot create upload directory. @Admin: Make sure permissions are correct');
To display the image:
printf('<img src="%s/%s" alt="uploaded image" />', $Directory, $ImageName);
If you need more assistance, can you post what code you have at the moment?