There appears to be something very wrong with the upload system in the way that I am currently testing it. I will do further tests but wanted to report that:
When I try to upload a 12MB file, the forum appears to lock up and task manager is reporting high CPU usage for w3wp.exe - I have to restart IIS to get things moving again.
Note that uploads appear to work fine with a 2MB file but with the bigger upload the progress bar window does not close...
I am using ASPUpload V3, blnUploadSecurityCheck = True, maxRequestLength="4096" (default in machine.config). The forum max file size is 30MB.
I'll add more info when I learn more.