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Do you mean to say that even if you have checked the check box "Upload Image File", you still see the error message "Please select a type first"? Please check the screenshot below:
Usually you see this error message when any of the option is not selected in the upload wizard. Which browser are you using?
I would suggest you to clear your browser cache and then try again. The following guide should help you in clearing browser cache: http://www.wikihow.com/Clear-Your-Browser's-Cache
Do get back to us if the issue persists.
Since this thread is fairly old, I have split your questions off to a thread of its own. We will update you with our answer here: