eBay has been very busy lately. I overheard someone in a cafe yesterday saying that it had taken ages to get some stuff listed.
A possible cause of your problems might, however, be that the file size of your picture is excessively large. To check, right-click the file and select 'properties'. If the file is over 30kb then it's larger than necessary and almost bound to cause problems with upoads. (If the picture was taken with a digital camera, using the default settings, the file size will probably be somewhere between 500Kb and 5000kb. Use the software that came with the camera - or something like IrfanView - to reduce the file size to something more sensible).
Chris