I see the error message "There was a problem uploading your file." Not sure what is wrong.
Rebuilding all of the Thumbnails, to a larger 150px size, wasn't a problem with ImageMagick selected (if that matters). Modifying the .htaccess file didn't help either. I'm using XenPorta on my test site, but disabled it temporarily as well.
The only way I can successfully upload anything is to disable the Flash Uploader. I'd like to re-enable it if possible. Tested it here and it appears to work.