your uploadify.php is all inside a comment so its not really saving the file.
change it with this:
<?php
if (!empty($_FILES)) {
$tempFile = $_FILES['Filedata']['tmp_name'];
$targetPath = $_SERVER['DOCUMENT_ROOT'] . $_REQUEST['folder'] . "https://wordpress.stackexchange.com/";
$targetFile = str_replace('//',"https://wordpress.stackexchange.com/",$targetPath) . $_FILES['Filedata']['name'];
$fileTypes = str_replace('*.','',$_REQUEST['fileext']);
$fileTypes = str_replace(';','|',$fileTypes);
$typesArray = split('\|',$fileTypes);
$fileParts = pathinfo($_FILES['Filedata']['name']);
if (in_array($fileParts['extension'],$typesArray)) {
// Uncomment the following line if you want to make the directory if it doesn't exist
// mkdir(str_replace('//',"https://wordpress.stackexchange.com/",$targetPath), 0755, true);
move_uploaded_file($tempFile,$targetFile);
echo str_replace($_SERVER['DOCUMENT_ROOT'],'',$targetFile);
} else {
echo 'Invalid file type.';
}
}
?>
and also make sure you validate the file type because i had a site hacked after a hacker uploaded a php shell script with uploadify.