I've reverted back to 1.7 as I really don't have the time to dedicate to getting this fixed or troubleshooting and 1.7 worked just fine - just thought it might be something you should be aware of. Will consider upgrading if/when this issue is fixed.
I had errors from UDDEIM that it couldn't save the config files (critical errors) despite changing the permissions as per your faq/readme instructions.
Please check the owner/group of com_uddeim and config.class.php. When the ftp layer is enabled the owner should be the ftp user, not wwwrun (or another web user).
You can suppress the error codes when you do following fixes:
[code:1]admin.includes.php
Line 429: uddeIMchmod($configdatei, "766"«»);
install.uddeim.php
Line 330: uddeIMchmod($folder, "766"«»);[/code:1]
No more chmod errors will appear when the access rights are set correctly (should be 0766).
I had this same problem and indeed in has nothing to do with UddeIM 1.9 It has to do with your configuration of the FTP layer in Joomla. I couldn't get my FTP layer configured right in Global Joomla settings so I just turned it off (heck it wasn't working anyway) and that fixed the problems in UddeIM.
It has nothing to do with permissions (that did no good changing them.)