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For those using PHP on Windows and IIS, you SHOULD set the "upload_tmp_dir" value in php.ini to some directory around where your websites directory is, create that directory, and then set the same permissions on it that you have set for your websites directory. Otherwise, when you upload a file and it goes into C:\WINDOWS\Temp, then you move it to your website directory, its permissions will NOT be set correctly. This will cause you problems if you then want to manipulate that file with something like ImageMagick's convert utility.
To get this script to work with uploadify
1. delete the session cookie workaround or create a PHP session and pass it using scriptData, lines 4-10
2. if your not passing 'id' 'through scriptData delete lines 12 -22
3. If your not passing 'type' through scriptData delete lines 37-45
4. make sure you correct any $folder and $theid references if you deleted the any of the above code
5. Should an error occur HandleError will only generate a IO Error 2038.