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No, I think the site's just playing up. I deleted one of my pics that I'd uploaded and tried to upload one of Timber's back up, and couldn't do it. So it can't be a space issue.
Try creating a dummy album and see if you can upload something in there...I have the feeling you won't be able to right now.
Let me know how it goes...I'll be having a bit of a play around too.
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