Unable to upload anyone seen this

[spd2612]

Cannot upload any images this problem just came up out of no where, it worked fine a couple weeks ago and I have changed nothing.
If I go to diagnostics and test it will show no problems below is the error I get.

Imageinfo Failed: <pre>The syatem cannot find the path specified.</pre>

Any ideas ?

4.2.0 Patch Level 4

PHP 5.3.19

server 2008 RC2

file_uploads: On
open_basedir: D:\websites;D:\temp
safe_mode: Off
upload_tmp_dir: D:\Temp
upload_max_filesize: 5.00 MB

Help Results
No errors occurred while opening the uploaded file for reading. You should be able to turn off the "Upload In Safe Mode?" option without any adverse effects.