Ok, sorry for not being specific, I am using a 10.1 Server, and at 3.2 I was able to upload using the GP service. Turns out that in a rush to republish my updated tool using 3.3 I neglected to check the upload support when publishing...what a rookie mistake.
On your comment however: yes, interesting that the GP service itself is configured to restrict the type to text file, but that is not honored by the widget....at this point i could care less! Live GPS data upload service gets lift-off tomorrow!