We have a page for members to freely share their vacation images and movie clips. For this page we used Easy File Uploader, a handy free extension usable as both a module and plugin. Now that we have switched to Easy Flash Uploader we find the status bar feature and upload speeds hands down fantastic! Not only is its look customizable but the process makes the upload experience (queues, multiple instances per page, etc) slightly addictive.
Keep up the good work!