Hi cherylanns,
Thanks for posting to my support site. I am glad you got your server issue sorted out. Now, with your current situation, it is interesting that the error message is "ERROR: The uploaded file type is not permitted". I say this because, the message should be, "ERROR: The uploaded file type, <MIMETYPE>, is not permitted." If the <MIMETYPE> is not in there, that means that the mime type could not be detected.
This is the result of your system bypassing, or not calling, the fileinfo functions, mime_content_type function, and not executing the file system call. This typcially happens if you are running a Windows PHP server. Is your server OS Windows?
This link gives a brief explanation: http://www.php.net/manual/en/function.mime-content-type.php#91646