Nathen sorry about this, I'm investigating this now. It is odd that it works with another account but not this one.
As for the watermarks, we will have an option to let people turn it on. Rather, perhaps should be the other way round and default on, with option off. As always, the suggestion to remove it was just listening to feedback from some keen photographers, and there is a way to please people that want it, and people that don't, so we might just have to get that in asap.
I don't think the recovery function has anything to do with it. Would you mind loading up your console (F12) and sharing what you get when you try to upload?
OK. This is what I see on screen...
And this is the console...
The bottom line about the server response is interesting as if I try to reload the screen, It gives me a server error and tells the server owner to check the logs!
Thanks for checking it out. Don't waste too much of your time fella!