Software: WordPress 2.5RC1
Problem: Media Upload Problem
As I was setting up this blog, I started out with WordPress 2.5 RC1 (Release Candidate 1). However, I faced a major issue with the new media uploading features that they have provided in 2.5; it failed to upload any media (I was trying audio). With some search, I stumbled on WP Support Forums and found that a few others were facing the same problem.
Finally, today, a working solution was posted. Thanks to Philip Barron for coming up with the solution here.