Hi ssjganesh,
Ajax uploader works in a hosted medium trust environment. means uploader control support "Full", "High" and "Medium" settings. It does not mean you must use the Medium setting.
Put the license file to the root of your site and do the setting below. Does it work?
Ensure that your site has the write/read permission of the license file.
<add key="AjaxUploaderLicense" value="~/ajaxuploader.lic" />
Regards,
Ken