In case it helps someone else out there:
I never got to the bottom of the issue here, tried on a different server with a new copy of Wordpress and Traject theme – so not sure what the deal is.
However… although I couldn’t get the portfolio page to work correctly I could recreate it using ‘styled images shortcode’ by using this modification:
In timthumb.php if you change
define (‘FILE_CACHE_DIRECTORY’, ‘./cache’);
to this:
define (‘FILE_CACHE_DIRECTORY’, ”);
The inline documentation explains that leaving this blank will allow the script to use the system temporary directory.
Works for me, might work for anyone else struggling too