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If you need to upload through a module rather than FTP try using wf-downloads. Media files tend to be big so best to check with your host to make sure your server can take web uploads of large files. Mine (ipower) has a limit of 2megs so I have to ftp anyway, but if the limit for yours is higher then wf-downloads will work to post files. Then follow advice of marcan and use the URL of your media file from wf-downloads and link it to your category/file in smartmedia. I use a photo gallery like this to handle all of the image content on my website, it makes it easier to have the server handle the images when you have a large number of people contributing content.
"Your motherboard wears Army chips"