Hi samh,
Pleaset create a folder under the root of your site and name it to UploaderTemp, then set the TempDirectory for the uploader control in web.config as below.
<appSettings>
<add key="CuteWebUI.AjaxUploader.TempDirectory" value="~/UploaderTemp"/>
</appSettings>
Ensure that your site has the write/read permisson of folder UploaderTemp.
Regards,
Ken