Easy fix: change the name of your picture.
Apparently some names are banned from facebook. Like this one: j0400967
I was trying to upload an image for one of the pages I am making on facebook. I tried converting the image to all different formats, including PNG, JPG, GIF, etc.. nothing worked. I even tried removing all the exif data. I tried using a photoshop filter to change the image, nada, no dice. Then I decided to change the image name. Bingo!
Name any image file j0400967 and watch the image upload choke. Fun.