I started Python command prompt and entered this:
import distutils.dir_util as du
du.mkpath( "c:/foo/bar" ) #assume dir 'foo' doesn't exist
This works fine and it creates the path 'foo/bar'.
Now, go to file explorer and delete the dir 'foo' and go to the Python prompt and issue the same cmd.
du.mkpath( "c:/foo/bar" )
Now, it just returns 
OTOH, if you try
du.mkpath( "c:/foo/bar2" )
it craps with an exception:
Traceback (most recent call last):
File "<pyshell#17>", line 1, in <module>
File "C:\Python26\lib\distutils\dir_util.py", line 80, in mkpath
"could not create '%s': %s" % (head, exc[-1])
DistutilsFileError: could not create 'c:\foo\bar2': The system cannot find the path specified
Same thing happens on Linux too.
Any help appreciated - as to my incorrect usage or anything else.