What I had to do was go into the preferences and set the preferences to NOT Automatically Approve files. Not the single or the batchload.
Then I set up my base Categories and Sub-Categories.
Then I used ftp to upload my media files to the batchload directory.
Once the files were uploaded to the batchload directory I went into debaser administration menu and used the bachload to get them. They were automatically moved to the uploads directory and were ready for approval as indicated by the number next to files waiting for approval. Then I went in and approved each one. Yes. It is cumbersome and slow but I think Frank is working on this issue for the future release. Besides, it gives you a chance to put them in a proper category or sub-category and to correct any Name problems. IE, the ' in hiphenated words such as Don't or We're etc. doesn't get escaped and can make a problem for the category file name.
*NOTE: It is best to only upload around 10 files (at least in my case) to the batchload for batchloading. Any more than that can really slow the approval down more.

HTH
Quest

Quest, did you see my reply? Most of that isn't necessary if you also just create a blank category. It seems to work on my side at least... and I don't need to fiddle with file locations. Single and batch both work flawlessly now.

I did, but I thought your files ended up in a black hole. I'll give it a try. Thanks!

Quest