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JotForm is a free online form builder which helps you create online forms without writing a single line of code. No sign-up required.
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Upon checking my account earlier, I was able to replicate the problem. When I added an "Image" field and chose upload, I'm getting the error message "Please select type first". Here's a screenshot of it:
But I tried it again and it is now working as expected. Please do try in your end. It seems like a temporary problem. Please do let us know if the issue persists. You can try logging out and logging back in. You can also clear your form's cache just to make sure: http://www.jotform.com/help/229-How-to-Clear-your-Form-Cache.