Watin FileUpload issues

We started creating some tests for one of our web applications. My colleague created the tests, amongst them one that does a simple file upload. She used the following code:
var fu = ie.FileUpload(Find.ByName("ctl00$ContentPlaceHolder1$tcContent$tpAddItem$uplGalleryItem$fuGalleryItem"));
fu.Set(UploadImageFile);
and it worked perfectly. She was using WatiN 1.2.4 and MBUnit 2.4.
I had Watin 2.0 installed and MBUnit 3.0. Downloaded the tests, removed the ApartmentState thing that seems not to be necessary in MBUnit 3.0, ran them.
On my computer the FileUpload Set method opens a file upload dialog and stops. I've tried a lot of code variants, to no avail; I've uninstalled both MBUnit and WatiN and installed the 1.2.4 and 2.4 versions. Tried all possible combinations actually, using .NET 1.1 and 2.0 libraries and changing the code. Nothing helped. On my computer the setting of the file name doesn't work.
I've examined the WatiN source and I've noticed that it used a FileUploadDialogHandler that determines if a window is a file upload window or not by checking a Style property. I have no idea if that is the correct solution, but just to be sure I inherited my own class from FileUploadDialogHandler and I've instructed it to throw an exception with a message containing the style of the first window it handles. The exception never fired, so I am inclined to believe that the handler mechanism somehow fails on my computer!
I have no idea what to do. I have a Windows XP SP3 with the latest updates and I am running these tests in Visual Studio 2008 Professional.
Update:
The only possible explanation left to me is that Internet Explorer 8 is the culprit, since my colleagues all have IE7. The maker of WatiN himself declared that identifying the windows by style is not the most elegant method possible, but he had no other way of doing it. My suspicion is that the window handling doesn't work at all in IE8, but I have no proof for it and so far I have found no solution for this problem.