This error is being displayed in a javascript alert box with the exact message as described above. I am getting this when I click on the button to select the image to upload. It does not happen on your demo. Are yo running 2.0 or 1.1 .net framework? We are running 1.1 framework.
I guesss you only need to look through your code to find the alert box that displays the wording above.
I hope this helps you find the
Regards,
Dennis Gilgallon