I appreciate all the help Chuck but your starting to not make any sense to me. First you tell me:
"Remember you can not upload a file over 2mb or it is dropped."
And I reply back saying I have succesfully upload several files over 3 or 4 MB in size, PHP info states max Post Size = 8 MB Maximum Upload Size = 20 MB
Uploading isnt the issue, it has to do with the filespace limit and how Photopost is handling the last file that is uploaded that reaches the peak file space limit. It tells the user that they are over file space and doesnt allow the photo to be added to their data directory but doesnt remove it from the upload directory. It thens sets there in queue using even more space.
It appears there is no way for a user to manage it then, even if they delete photos in their gallery to free up space they can't tell that photo in the queue to upload again or get out of the queue.