Hello friends i came across a good jquery flash file up-loader here . Do use it its simple and powerful .

The next main thing was generation of thumbnail using the same flash uploader after some homework found a solution for it . Do some simple updations in your existing code .

1. Create a folder named “thumbnails” under the upload folder .

2. Replace the code in uploadify.php [you can find it under scripts folder] with the following code .

if (!empty($_FILES))
{
$tempFile = $_FILES['Filedata']['tmp_name'];
$targetPath = $_SERVER['DOCUMENT_ROOT'] . $_REQUEST['folder'] . '/';
$targetFile =  str_replace('//','/',$targetPath) . $_FILES['Filedata']['name'];
move_uploaded_file($tempFile,$targetFile);
echo "1";
}
$imgsize = getimagesize($targetFile);
switch(strtolower(substr($targetFile, -3)))
{
case "jpg":
$image = imagecreatefromjpeg($targetFile);
break;
case "png":
$image = imagecreatefrompng($targetFile);
break;
case "gif":
$image = imagecreatefromgif($targetFile);
break;
default:
exit;
break;
}

$width = 80; //New width of image
$height = $imgsize[1]/$imgsize[0]*$width; //This maintains proportions

$src_w = $imgsize[0];
$src_h = $imgsize[1];

$picture = imagecreatetruecolor($width, $height);
imagealphablending($picture, false);
imagesavealpha($picture, true);
$bool = imagecopyresampled($picture, $image, 0, 0, 0, 0, $width, $height, $src_w, $src_h);

if($bool)
{
switch(strtolower(substr($targetFile, -3)))
{
case "jpg":
header("Content-Type: image/jpeg");
$bool2 = imagejpeg($picture,$targetPath."thumbnails/".$_FILES['Filedata']['name'],80);
break;
case "png":
header("Content-Type: image/png");
imagepng($picture,$targetPath."thumbnails/".$_FILES['Filedata']['name']);
break;
case "gif":
header("Content-Type: image/gif");
imagegif($picture,$targetPath."thumbnails/".$_FILES['Filedata']['name']);
break;
}
}

imagedestroy($picture);
imagedestroy($image);

echo '1';

You are done ! Hope it helped you .