Ahh man I finally figured out the cause of the "you did not select a file" error!

I had no problem uploading files with most any extension except .jpg and a few others. It was due to URL's being rewritten by vBSEO mod. They have a section to rewrite attachment URL's. I disabled that feature and everything is working. Just thought I would pass that on. I imagine a few other rewrite mods may be rewriting attachment URL's.