[Plugin: WP Business Directory Manager] – uploading photo "file too small"

I’m trying to upload a photo, and at first I realized I was uploading a small image (40kb). So I uploaded an image that was over 1 meg and still get this error:

Warning: filesize() [function.filesize]: stat failed for C:\WINDOWS\Temp\php21F.tmp in D:\Inetpub\wwwroot\MYWEBSITE.com\wp-content\plugins\wp-business-directory-manager\wpbusdirman.php on line 4342

The size of test-image.png was too small. The file was not uploaded. File size must be greater than 300 bytes