I looked at your info uploaded the xml and install file to your server selected the upgrade option it ran fine and your running 2.5 so not sure what your issue was as it worked fine. Maybe you where not waiting for the upgrade to complete.
Nope all I did was look in your database view your gallery version. Upload the 2 files I noted then logged in and ran vbgallery install selected the upgrade option waited for it to complete and you are now running 2.5 and the flash upload options all exist now and your version says 2.5