It failed me from both n900 and touchpad.
Will try this out per WordPress suggestions:
I can’t upload photos/videos, I get a “Failed” error message. What do I need to do?
If you’re running WordPress 2.9.2 or later please be sure to add the following lines to your root .htaccess file:
php_value memory_limit 128M
php_value upload_max_filesize 128M
php_value post_max_size 128M
php_value max_execution_time 120