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The message means Input/Output Error and when it occurs when you are uploading it usually suggests that your Internet connection might have dropped out or something similar.
In these situations we usually recommend that users delete their browser cache ( Tools > Internet Options > Delete) Reset their computer and modem/router and try again. If the problem persists the contact Shutterfly Customer Support on the link at the bottom of your Share Site pages.
I had this problem when using the Google Chrome browser. When I tried it on Internet explorer it worked fine. TRY THIS