There are a bunch of much easier ways to send an image to the server in Flash. The user chose to make the Flash side extremely complex in order to make the server side extremely easy. Also keep in mind that the user there is sending a dynamically generated image, sending a image chosen by the user is even easier for both client and server.
The easiest way to send an image, or any data, from client to server is to use URLRequest
like the other poster did but just put the image in the data field directly, none of the multipart messaging stuff. Then on the server side read the request stream and store it in it's entirety as the image. Depending on the server platform this may take more code than using a standard form post (more code as in 5-6 lines instead of 1-2). Either way, it's usually straightforward.
Other options are to use web services (bad, encodes as base64) or AMF/Remoting (not bad, but no big advantage here, but easier if it's already configured and used elsewhere).