@rtumulak. I am just about to go to bed, when I checked my mail and saw your post. Your PHP version is 5.2.9, and you are running a windows server. Is your server IIS or Apache? Either way, if your PHP mime_content_type function is not detecting the mime type, then you will have to upgrade your PHP version to at least version 5.3 and enable the fileinfo dll on windows. The minimum requirements for the module is 5.3, but I use workarounds for letting it work on PHP 5.2. However, in your server setup, the workarounds are not applicable.
I don’t know where your file uploads go. That is managed by your PHP settings and your Server/PHP setup. You should be able to look at your phpinfo to see where the temporary files location is.