Cannot upload image via Admin

[Broadsword]

Hi - i am trying to set up a new site using OSC 2.2 RC1 but i am unable to upload the image.

 

I am trying to do this from within the Admin area - want to upload to 'Manufacturers' using the 'browse' facility to upload directing from my PC.

 

Any idea why i cannot upload and what i need to do to be able to?

 

Thanks