An error occurred while trying to upload the file “example.jpg”
Any help will be appreciated 
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Strange error, is this happening on a fresh Admin session, can you recreate it with any page or any file uploaded?
I was getting this as well and cleared by browser cache. Seemed to fix the issue.
I think its the file size.
Check to make sure your PHP configuration can handle a file of that size.
Also be aware that uploading very large images, is going to cause problems for the GD library if you try to resize the image. This is because the PHP GD functions essentially manipulate the image as a bitmap, taking up much more memory than the original file. So you could get very bad performance, and use up lots and lots of memory.
Thanks for the reply rhukster.
Recreated this with large files. Will soon have a more meaningful error message. Solution: increase post_max_size in your php.ini setup to allow larger files.