You should be seeing an upload successful message displayed just under the Server Configuration screen title. If that message is not displayed the file is not being uploaded, at least that has been my experience on V1 and V2. Put the xml file in a simpler directory structure, something like c:tempDevClusters.xml and upload again. What browser are you using? If not IE, try bring up EZSrve on IE and doing the upload, if you have that option. There have also been some issues with FireFox 3 but they surfaced back on V1. I just tried FireFox 3.0.3 and cannot upload from c:tempDevClusters.xml, something I have done hundreds of times under IE. Clicking the Upload File button on FireFox 3.0.3 gives the appearance that nothing is happening. Upgraded to FireFox 3.0.8 and still do not get successful upload message. Went back to IE to be sure EZSrve was still working, which it is. Realized that I do not even see the standard popup warning message about uploading invalid xml files. Looks like V2 Upload File is not working on FireFox 3.0.3 or 3.0.8.
The following is what should display under Server Configuration title when upload works.
File upload successfull. Please restart to see the changes once you complete all the uploads