For note, it doesn't matter what your allowed uploads is set to, your php.ini must also allow uploads that large, most stock settings only allow 2/4mb.

As for the issue at hand, make sure the uploads directory is chmodded 777

I am a Web Development Contractor, I do not work for UBBCentral. I have provided free User to User Support since the beginning of these support forums.
Do you need Forum Install or Upgrade Services?
Forums: A Gardeners Forum, Scouters World
UBB.threads: UBBWiki, UBB Styles, UBB.Sitemaps
Longtime Supporter & Resident Post-A-Holic
VNC Web Services: Code Modifications, Upgrades, Styling, Coding Services, Disaster Recovery, and more!