I just changed the Template. With a different template there is actually an error message displayed. It reads: "Please select a file before uploading." Does this help you in narrowing the problem down?
That means the upload is failing on frontend. Something installed is very likely conflicting. Please if possible create a fresh Joomla + CB install in a sub-folder or sub-domain of the same host and attempt to frontend upload. I was not able to find the conflicting extension.
Kyle (Krileon) Community Builder Team Member Before posting on forums:
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