Unfortunately, this option is valid for Joomla core components but not automatically valid for third-party extensions such as JAM witch implements some custom code to call upload field from Joomla libraries.
For example, in my case, JAM import all mootools staff needed to create the upload field alngoside with some custom JS code to call FancyUploader (attached to this comment).
I'd need to Know some guidelines to convert this fancyuploader with standard upload form.
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by: binarygeekPosted on 2009-05-07 at 00:41:32ID: 24323154
goto Site->Global Configuration
Hit The "System" tab
scroll down a bit
Check the last option of media settings