UPDATE: 18 January 2012 - Issue has been resolved. There are no longer any problems uploading images.
17 January 2012,
The server we were using to allow users to upload photos has suffered a severe hardware issue. The ISP has spent the whole day installing new hardware and restoring the software from backups.
Note: this situation does not affect any images that were previously uploaded. They are not served from this server. This only affect users who are trying to upload new images.
We believe the restore process will probably be finished early morning 18 January 2012.
Apologies for any inconvenience that this may cause.