Try this first. There are many things that could cause this issue but yes you should be able to use it. If this doesn't work I will give you something else to try.
Go into Internet options and into the security settings and changed the settings on the Active x to this. Then reboot your computer and go to try and upload pictures again. Click OK when it comes up.
Check your security settings:
2. Delete the Photo Upload Control then go back and try again. It should re-download it. To do this go to Internet Explorer, Tools, Internet Options, Delete cookies nad files first then click on settings then view objects. Look for MSN photo upload tool and DELETE it. GO back and try to upload pictures again. you will be prompted to redownload the photo upload tool and say yes.
3.Do you have a Firewall or pop up blocker? Disable these while adding pictures and see if this works.