just checked your sourcecode... something is interfering with flashuploader...
the settings in template are changed !!!!!!
istead of having an integer for max files or max filesize, if you look at the sourcecode of the upload page you have :
Content visible to verified customers only.
This workaround vblitteral shouldn't be there...
It should work, but it seems that maybe something is not correctly passed to flash..(like a quote missing or something else)
This is in your template... this is NOT the original template !!! and it seems that the masterstyle template has this also...