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Combining the two fields into one is confusing. For instance, it's not clear from the image you included what the button does and what I'm supposed to enter in the field. From your explanation it's clear that you want to allow both options. In these cases, the best way to do that is to actually show the user the two different options. If space is a concern ...

There are people that will type in or copy the file name and location. If you are working on a file that is at the end of a long directory structure, and you have it open, it is often easier to just copy the link to the file and paste that in than browse to it. For other people it is easier to browse to that file and select it. For both of them there is a ...

Your sample guy doesn't look like he enjoys following instructions... Don't use a random sample, use a dedicated picture with annotations (e.g use a generally bright photo, and circle the important elements in red, and label them): You xhamster.com your username Use a few smaller ones to show common mistakes, e.g. like that: Rationale: People don't ...

If you are concerned about the number of options being overwhelming, then you should consider the concept of progressive disclosure, where the more advanced features are generally hidden until specifically requested by a user action. That keeps the interface simple, but lets power user have access to the features they want/need. ...

Personally I think WordPress's method of uploading is fairly intuitive, i.e the directory structure (Year/Month/), with a plethora of options available after uploading, size, float, style, alt...etc. ModX CMS uses a similar fashion whereby you have one resource browser, and the user may create additional folders if required, or just upload to a central ...

The funny thing is browsers already made this choice for your users, as you're using a web form. Here's Firefox 6: Clicking the input field opens your Browse dialog. You can't type into the field, you can't paste the location to this field. Here's IE8: That text field doesn't work. Clicking doesn't let you type. You can double click it to open the ...

Here is what I'm going for with the new UI in one of my projects, it's a WordPress style; drag and drop to upload & select files option in one. And since it's an image upload function, I have put preview right beside it directly. Here is a screenshot:

I'm curious about the options themselves. Are they at all sensitive to the type of file that is being uploaded (for example, options for images, options for pdfs...). If options can be associated reliably with file types, you could let a person choose a file first and then present options that are relevant to the file type. That would keep your interface ...