PHP File Upload not working as expected

Hi All,
I'm pulling what little hair I have left out on this one.  Perhaps a fresh set of eyes on it would help.

I have a VPS through HostMySite (just in case this matters).

I have been trying for the last hour to figure out what is wrong with this code.

I have set the IUSR_TEMPLATE user to full read & write access on both folders on the server that is supposed to have the upload file and the location where the file is to be moved.  

Please check this code and see if I am missing something.  When I look on the server, I can not find a file called D:\TEMP\php69.tmp.

The Result of the echos are as follows:
error: 0
uploadfile: d:\inetpub\wwwroot\hotjupitersites\tecniplast\_imports\products\active_bg.gif
temp_name: D:\TEMP\php69.tmp

The PHP error is:
PHP Warning: move_uploaded_file(d:\inetpub\wwwroot\hotjupitersites\tecniplast\_imports\products\active_bg.gif) [function.move-uploaded-file]: failed to open stream: No such file or directory in D:\inetpub\wwwroot\hotjupitersites\tecniplast\_components\update.php on line 41 PHP Warning: move_uploaded_file() [function.move-uploaded-file]: Unable to move 'D:\TEMP\php69.tmp' to 'd:\inetpub\wwwroot\hotjupitersites\tecniplast\_imports\products\active_bg.gif' in D:\inetpub\wwwroot\hotjupitersites\tecniplast\_components\update.php on line 41

When I print_r $file['productsummaryimage']) I get:
Array ( [name] => active_bg.gif [type] => image/gif [tmp_name] => D:\TEMP\php69.tmp [error] => 0 [size] => 13136 )Start Free Trial

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function updateProduct($request,$files,$application){
	$productsummaryimage = '';
	
	if(isset($files['productsummaryimage'])){// UPLOAD NEW IMAGE
		$productsummaryimage = $files['productsummaryimage']['name'];
		if($productsummaryimage !== ''){
			$uploadfile = $application['root'] . '_imports\\products\\' . $productsummaryimage;
			
			echo 'error: ' . ($files['productsummaryimage']['error']) . '<br>' ;
			echo 'uploadfile: ' . $uploadfile . '<br>';
			echo 'temp_name: ' .  $files['productsummaryimage']['tmp_name'] . '<br>';
			
			$moved = move_uploaded_file($files['productsummaryimage']['tmp_name'], $uploadfile);
		}
	}
}