Error-17 while uploading images to a test server

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[cpmorin]

Good day to all!
I'm getting an error message (error 17, can't upload image) when I try to upload an image (a 60K jpeg file) using the Admin page. I'm working on a test server (localhost) running MAMP - yes, it"s a Mac - and everything's been working just fine, exept this.
Is there a limit on the file size? Should the JPEG file be in a specific directory (duh - we Mac guys say "folder") to begin with? Is the error happening because it's a test server?
Context update: I'm a graphic artist, not a web programmer, and that is why I really like this software. It's insanely cool, affordable and practical. I'm getting my licence right now.