I'm not entirely sure what's causing this problem - are the permissions on the folder you're trying to upload to correct? If so, I suggest you open a support ticket and let the staff look at it.
Please however take note of this extract from the terms and conditions:
Quote:
The list of banned content includes, but is not limited to :-
Illegal Material - This includes copyrighted works, commercial audio, video, or music files, and any material in violation of any regulation or material that is perceived to be misleading.
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