I am using VS 2008 with .NET 3.5 and after I put the control on the page and let it import it's ig_ui folder I added the following headers.

    <link type="text/css" href="ig_ui/themes/ig/jquery.ui.custom.min.css" rel="stylesheet" />
    <link type="text/css" href="ig_ui/themes/base/ig.ui.min.css" rel="stylesheet" />

    <script type="text/javascript" src="js/jquery-1.6.1.min.js"></script>
    <script type="text/javascript" src="js/jquery-ui-1.8.13/jquery-ui.min.js"></script>
    <script type="text/javascript" src="ig_ui/js/min/ig.ui.min.js"></script>

I also tried using the Microsoft CDN for jQuery and jQueryUI.  Then end result is that the page opens up and control looks good and brings up the find file dialog as expected but it never actually uploads the file.  The progress bar opens, blinks a bit and then goes away.  No file is to be found in the destination folder.  The Uploaded events don't fire client or server side.

I added the modules and handlers shown in the help site and documentation but the behavior was exactly the same.  It doesn't throw any exceptions so I can't even figure out where to start looking.

        <modules>
            <remove name="ScriptModule"/>
            <add name="ScriptModule" preCondition="managedHandler" type="System.Web.Handlers.ScriptModule, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
      <add name="IGUploadModule" type="Infragistics.Web.UI.EditorControls.UploadModule" preCondition="managedHandler" />
    </modules>
        <handlers>
            <remove name="WebServiceHandlerFactory-Integrated"/>
            <remove name="ScriptHandlerFactory"/>
            <remove name="ScriptHandlerFactoryAppServices"/>
            <remove name="ScriptResource"/>
            <add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
            <add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
      <add name="IGUploadStatusHandler" path="IGUploadStatusHandler.ashx" verb="*" type="Infragistics.Web.UI.EditorControls.UploadStatusHandler" preCondition="integratedMode" />
    </handlers>
    </system.webServer>

Any help at all would be greatly appreciated.