well if the flash uploader does not work then there is your problem with uploading.
We provided this uploader from a third party because people wanted it. we do not guarantee it will work on all peoples setups hense the switch. Myspace or facebook are individual servers they can code up things to work with there specific servers. Facebooks flash uploader is horrible I can never select more than 5 files at a time without it crashing and thats on there site.
The flash uploader has a yes no switch so it can be disabled. Now one thing to also consider when trying to use the flash uploader is you need to set usergroups permissions correctly
This has to be set to yes under usergroups permissions for all groups able to upload
Can upload images directly from server
Also the flash uploader will not work if MOD SECURITY is turned on on the server.