Solved... Here's an issue for the problems I have been having trying uploads with:

JQuery 1.5
Uploadify 3.0
ASP Back End Script

uploader: This is supposed to be the swf upload file, right?
script: This is supposed to be the ASP/PHP file that handles saving the file.

I went through hours of debugging. Strang things going on, then I checked out the source of uploadify 3.0.

I reversed the two, and it worked perfectly the first time.

MY CODE:

$(document).ready(function() {
$('#file_upload').uploadify({
'uploader' : '/uploadify/fileupload-upload.asp', //NOT THE SWF LIKE DOCS
'script' : '/uploadify/uploadify.swf', //NOT PHP LIKE DOCS
'cancelImg' : '/images/cancel.png',
'auto' : false
});
});

I just hope this helps someone else out. Thanks for your time if any of you were looking into this.