Get "File Upload Error" when I try to upload any images to Node
There is a long thread in the Drupal.org site surrounding this issue, I didnt locate it at first due to my error message being masked. After many hops around the net I did finally locate it, and it seems to effect quite a few people.

See this link

http://drupal.org/node/1002048

post #154 has a link to the patch for both version 7 and 8 of Drupal.