The status log looks perfectly normal I don't see any indication of a problem.
You may want to check your upload packet size.
Options > Preferences > Advanced > Upload Packet Size
2048, 4096 or 8192 are good choices.
Quote:
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Transferred: wtc911.gif 110 KB in 0.74 seconds (148.2 KB/s)
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110 KB is the size of data that was sent to the server, the fact that the file on the server is only 52KB would lead me to believe that there was a server error of some kind. (maybe out of hd space)