I have done this by using a component I already have installed on my Server.

I use ASPUpload and ASPJPEG.

 http://www.aspupload.com

I rewrote the code to use this so you get a progress bar and the ability to resize images to a max size which i have set in the code using the ASPJPEG object.

If you want an example let me know and I will send you alink to see how it looks.

If you want the site hosted, I can help