I've configured a network share to host the temp files and setup the project with your above recommendations. Everything is working as expected except when Silverlight is disabled and Flash is enabled in both IE7 and FF (which is the original problem). Under these conditions, when I click the button that launches the open dialog, nothing happens.
If Silverlight is enabled and Flash is disabled, it's fine. If both are disabled, it falls back on the standard HTML input type="file" like control and it's fine. The problem is isolated to when Flash is present but Silverlight is not.
Could you please have another look?
Thanks,
David
PS - I just realized that I downloaded version 3.0 20090412. It supports the WindowsUsername, WindowsPassword and WindowsDomain appSettings properties but it seems like an older version.