I had a similar issue with image upload after upgrading which was resolved by installing Flash Player 10. It still needs a bit of tidying up but it works.
Apart from that the upgrade went smoothly as follows:
1. Test & verify upgrade on test server
2. backup database and entire public folder
3. set folder permissions to 777 and file permissions to 666
4. perform upgrade through Magento Connect
5. reset permissions
6. clear cache.
I have had similar issues with upload images to Magento 1.1.6 on OSX 10.5.5 (PPC)
I tried all previous version of Flash end ended up using the old Flash version 9.0.115
This one works for me, although it is not recommended by Adobe.
You can find the old version on the Adobe site.
Download includes a uflash_uninstaller to remove other version.
I still get a 404 page not found when I try to access ‘Magento Connect’ from the Admin area. I also get the same message if I navigate to the downloader directory. Version 1.1.7 anyone have any idea’s?
That’s why you should always create a backup before you do an upgrade, so if something does go wrong, you can revert back.
I just wanted to take time to say THANK YOU! for your post. I have found myself referring back to it a number of times in the last week and I very much appreciate your taking the time to provide us with precise commands and also post those links to other essential SSH commands. For someone like me who is still learning Linux while also trying to learn Magento, this information has been invaluable.
Interestingly enough, my image uploads are now working again. I ended up changing BACK to Flash 10. There is no progress bar showing the upload in progress, but after a few seconds the image does upload.