Blogger recently made several changes in its platform, like it introduced blogger comments, blogger new homepage, popular posts, blogger stats etc. Due to such updates, blogger images upload was not available for two hours. Now, after all these updates, several blogger/blogspot users are having trouble with uploading images to their blogs using Updated editor. They are getting an error "Server Rejected" while uploading pictures from computer.I was also having this problem and now have found solutions to get rid of this error. This error normally is temporary but sometimes it remains for hours. So, simply follow below tips to get rid of "Server Rejected" blogger image upload error.
Blogger Image Upload Error "Server Rejected" - Solution
Following are solutions to fix this error.
Solution#1:
Simply, use OLD editor (Dashboard > Settings > Scroll down and select "")
Solution#2:
The issue is partly due to Picasa web albums, which limits you to 1000 images per album. When you hit this limit, you can no longer upload to the album and must create a new album for further uploads. Now Blogger stores the images you upload to your blog in a Picasa web album it creates for this purpose. When the 1000 image limit for this album is hit, Blogger is supposed to create a new album for your blog. However, it appears Blogger In Draft fails to do this. The solution in my case was to switch to the normal Blogger (i.e., blogger.com not draft.blogger.com), upload a single image to my blog, thus causing a new album to be created, and then switch back to In Draft for further uploads. If you have the 'server rejected' problem and the Picasa web album for your blog has exactly 1000 images, this solution will work for you.
Solution#3:
Wait and Let the Blogger fix this issue.