There was an error uploading this file to the server. INSTALL ERROR

I have uninstalled v8.0 and Tried installing 8.1 but joomla gives me this message There was an error uploading this file to the server.

I am running
joomla 1.5.15 with PHP - 5.2.11
any ideas? something with my server i guess?

Would you please try uploading the zip file to your server and then unzipping it by hand and installing through the second option (Install from Directory).
It seems to be a file size or a memory limit on your server getting in the way.