If you are running PHP as a module on a Win2k server remember to set the upload_tmp_dir in your php.ini to a folder that allows the Anonymous Internet User read/write permissions. Otherwise you’d end up with 0.0 byte files when performing PHP uploads…By default the upload_tmp_dir is set to %windir%temp if no value is given. This system folder is normally restricted to known Admin and User accounts only, hence files that are uploaded via PHP are not saved to the filesystem. You may notice stat failed warnings if you try performing file operations on uploaded files.
To resolve this problem you should either give Anonymous users access to the %windir%temp folder (not recommended) or create a folder in D:uploads, if you have a D drive that is, and point your upload_tmp_dir to it, then give Anonymous users access to the new folder.