I ended up uninstalling this. I run a music site, and it's fantastic in part for sites like mine since the idea is for members to upload their own content/songs.
The problem is that there isn't any limit set for the number of files or space constraits, so brand new members could concievably sign up to my site and upload a slew of pirate MP3s, or just keep uploading until my webspace is consumed.
If you can add to the usergroup permissions a file count and space check, I'd love to reinstall it - I realize that I can set the max upload size in php.ini, but that doesn't really get around the rest of the issues.