First, you put ~/domain.com/images , but the error says you tried to access ~/domain.com/catalog/images
So you should modify the httpd.conf to make sure you reference the proper folder.
Then you should also then check the ownership of the proper folder and files. Whichever is the correct one: /domain.com/images or /domain.com/catalog/images. Depending on your exact control panel software it may need to be one of the following:
apache : apache
nobody : nobody
For Plesk it would be:
ftpusername : psacln or ftpusername : psaserv
If you look at the actual domain's document root and see the uid : gid ownership, that may give you a clue to what the other sub-folders should be.
Again, as I stated earlier, you may want to do this per domain in a vhost.conf or vhost_ssl.conf file, rather than doing it globally.