this image could not be uploaded due to an internal error

Cannot upload photos in blogger? More often than not, this may be due to Blogger Maintenance.

Follow this simple steps.

Step #1.

Check Blogger Official Blog for scheduled maintenance.
Known Issues for Blogger
Blogger Status

Step #2.

Check Blogger Help Forum and join the discussions for possible answers.
Something is Broken

Step #3.

If and when you cannot find any solution after doing the above items, try some basic troubleshooting on your end.
1. Clear your browser's cookies. Close your browser. Open it again then relogin to your account.
2. Try uploading the image from your Computer to Blogger (i.e. either through Design/Page Elements or Posting/New Post)
3. Try a different image to upload.
4. Rename the image file (from your Computer) before upload.
5. Copy the image file to a different location, e.g. from My Documents to My Pictures, before upload.
6. Try uploading the image directly to Picasa Web. Get the link. Use the link to upload.
7. Try a different browser, e.g. Opera, Chrome, Safari, Firefox.
8. Try a different computer.
9. Try a different Blogger account.
10. Try using a different image hosting website, e.g. Photobucket. Upload the image there. Get the direct link. Use the link to upload.