this issue is closed ... The problem was with our session handler registration being called after include_phpuploader.php so where the include was writing a session to the filestore using the standard php file representation it was trying to read it back from our database version.
This was also the root cause of a number of FLM and SLM errors in our version of demo2
John Brooker Director Shadow Organisation P/L
Based in Coffs Harbour Australia.