The same problem has been documented upstream here:
http://dev.deluge-torrent.org/ticket/138

The solution is to either recreate the folder (in your case 
/media/Media/Ktorrent) or delete everything in your deluge settings folder to 
reset settings to default per Deluge's FAQ:
http://dev.deluge-torrent.org/wiki/Faq#HowdoIrestoreallsettingstodefault

** Bug watch added: Deluge bug tracker #138
   http://dev.deluge-torrent.org/ticket/138

** Changed in: deluge (Ubuntu)
       Status: New => Confirmed

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Deluge will not launch if downloads folder does not exist
https://bugs.launchpad.net/bugs/223118
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