I managed to create multiple store by using the subdirectory + symlinking method. Everything works fine except that images are not found! I made sure that I created a symlink for the media folder, and tried to manually browse to file specified as not found. The files are there, its just that my website doesn't see/find them. I am quite sure that this has something to do with the symlinking as css, js and other folders are served correctly.
In my system.log file it gives me this error for every image that is being loaded:
2015-07-21T08:04:18+00:00 ERR (3): Warning: imagejpeg(): Unable to open '/www/reservo/media/catalog/product/cache/7/small_image/350x350/9df78eab33525d08d6e5fb8d27136e95/J/O/JOK90X9016_2.jpg' for writing: No such file or directory in /www/reservo/lib/Varien/Image/Adapter/Gd2.php on line 166