The problem with the browse button in IE8 showed up on my local xamp server installation, but after reading your email I tried it on the destination server and I could see it.
But now I have another problem:
It is showing everything as ERROR: Invalid Filetype when I try to upload.for example, even .jpg is rejected, when it is part of the original parameters upon installation. I will email you the link so you can see what is going on.