Upload images – Theme options

I can’t comment on your code, but you might find this link useful:

Options Framework Theme:
http://wptheming.com/options-framework-theme/

This is something you have to edit carefully, but it has pretty much every type of control you can think of in there. It also had the only working MCE Editor that I could find. I wanted that for allowing text to be saved in the theme, things like editing the address in the footer, or the copyright.