Thanks for the reply Papa.
Sorry no joy.
My WP-Config file is set to run PHP at 256mb the server has 1GB of RAM and the file I was trying to upload was a mere 340kb (approximately)
I have also checked all folders for 777 access and they are good.
I have also just set the image uploader to accept images that are no greater in size than 1000px in width or height, and attempted to upload a 600x616px file but still no good.
I have also checked the resource setting in my php.ini file and they are currently like so:
;;;;;;;;;;;;;;;;;;;
; Resource Limits ;
;;;;;;;;;;;;;;;;;;;
max_execution_time = 120 ; Maximum execution time of each script, in seconds
max_input_time = 60 ; Maximum amount of time each script may spend parsing request data
memory_limit = 512M ; Maximum amount of memory a script may consume (64MB)
Can you offer any other ideas ? Am I missing a setting or permission somewhere ?