Hmm.. well I'm certain that we are able to upload photos. I have been doing so since i was just a new member. I wonder if maybe something changed or there was just a connection/server problem with UCoz. That happens from time to time. May I ask what the image was? Just a few details. File type, size, what it is (if you want), where it's located, etc..
If you are still having trouble, I will take a look at your permissions and abilities, and I'll work it out for you. That or you can send it to me and I'd be happy to get it up for you. You can link it to me or send it to me in an email at godlygrim@yahoo.com , and I'll take care of it right away. =) Good luck!