Your skill will accomplish
what the force of many cannot
You didn't mention the magic word, "taint".
Depending on how you open the file, special characters in the filename can do dodgy things.
e.g. if you passed it to a shell script, a filename of: "foo.jpg;rm -rf /" could ruin your day.
As could "../../../../../../../etc/passwd", come to think of it, if someone uploaded their own passwd file. (Oh...so it won't be running as root. In that case "../../../../../home/guest/.rhosts". Whatever. Use your imagination.)
Basically, turn on taint checking and then work out which characters you want to permit (don't try and make a list of bad characters). A reasonable policy might be alphanumeric plus a maximum of one '.' character. Maybe underscores if you feel generous :-)
One other issues you may have (but probably not, if your size limits are small) is the problem of being used as a file exchange. This problem plagues anonymous FTP servers which allow upload. If you aren't careful you end up being an exchange point for the exchange of warez and/or nasty kinds of porn. (I've seen this happen to an FTP site not far from where I am sitting).
Does this damage you? Depends on how well you are believed by your local law authorities when/if someone complains.
Your defence here is to log all transfers and/or personally inspect uploaded content before making it available on your site. Small file size limits also make this unattractive to evil-doers.
Basically this is one area where the urge to genericise your code should be resisited. You have a particular use in mind (sharing text files, uploading jpgs to perlmonks etc). If you can detect mis-use (is this a binary file? If this a valid JPG?) then you should probably try and do so...
In reply to Re: Security issues when allowing file upload via CGI