cforms II – error during upload with file upload field

I have a form that has no file upload that works perfectly… BUT I cannot get my form with a file upload field to work. After filling out the form and clicking SUBMIT – the page ‘spins’ for a minute or so and then I get the following error “Error during upload”

I have enabled full read/write permission on the receiving folder and I have tried disabling ajax, but I don’t know what else to do… anyone have any thoughts?

FYI – I am using hostmonster… (if that helps at all).

Thanks!