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Hey Kurt, 

This error is happening because of an issue in version 2.65 of CMS Builder, it's been resolved in the latest release. 

The reason the error appears is because the image you're trying to upload is using the CMYK color space, and these types of images aren't supported by older versions of Internet Explorer. 

For the image to upload successfully, you'll need to convert it to use RGB color, you should be able to do this in most modern image editing software. 

Let me know if you have any questions. 

Cheers!

Greg