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I'm still having image upload failures and my Server Admin has done EVERYTHING possible on the server end to fix this and he swears it is a vBulletin problem. It's been two months now of trying to fix this mess and the suggestions you had given with regards to pointing to this link do nothing to help fix this problem. Attached is a picture of what I am getting on my end.
Here is what my server Admin has told me, he has a very reputable business with 63 servers for the last 12 years and hosts many forum site none of which have this problem. It is not a server issue, please help ASAP.
This is what he said:
The maintenance diagnostic in the admin area shows zero errors and that all existing attachments are working fine. We have other sites using attachment functionality (in fact hundreds of them) on the same server running fine. All we get is "Upload of file failed. " on the forum side of things.

EDIT:
I just tried to upload the picture to your site show you guys and it states upload of file failed, it is even happening on your site. It was an image size issue, I have adjusted my Attachment settings on my site for all types to 10MB and 1000x1000 pixels from 1MB 800x600 pixels and I am still having an issue with tiny files that are 10kb big and are 100x100 pixels.

Where else do I have to go to edit these settings?