I think it is now working, but there is still a mystery in it at my end. On a punt I shifted my $folder path back a directory level, and the file list appeared. That makes no sense to me for 2 reasons - version 2.7.7 worked just the way I had it all night (now 1.30am where I am), and secondly when I allowed it to create the cache directory it worked with the original path. It has uploaded a file to the correct location, so for the moment, consider it solved. Thank you, Michael, for all your patient information. I wouldn't have got there on my own.
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