I have had quite a few customers with this pesky Multi file upload button being deactivated, so there should be a lot of SharePointers out there scratching their heads.
I will explain a few of the common reasons.
Basically the only thing that is wrong is that an ActiveX component is missing or prevented from working.
The ActiveX component is called Microsoft Office List 12.0 (when using Office 2007), Microsoft Office List 14.0 (Office 2010) or STSLIST.DLL.
Main reasons for missing or blocked upload multiple files component:
1: Office Professional not installed. Regular version does not contain the component.
2: Office Professional installed, but not Microsoft SharePoint Services Support.
3: The ActiveX component is blocked in the browser.
4: You have remnants of an old office installation, and the computer is not sure what to do.
Try the steps below to fix it.
Toggle Microsoft Office List ActiveX component in IE:
1: Click ”Tools” in the upper left corner of Internet Explorer.
2: Click Manage Add-ons.
3: Select “All add-ons” In the “Show” drop down.
4: Find the Microsoft Office List 12.0 or Microsoft Office List 14.0 and click it.
5: Click the Disable button and afterwards click Enable to start it back up. If it was disabled to begin with, just enable it.
6: Click “More information” and in the popup click “Remove all sites” and afterwards “allow on all sites”.
7: Close all Internet Explorer windows and try again.
Microsoft SharePoint Services part of Office has not been installed:
If the component is not there at all then please make sure that you have the required office components installed.
See this blog post.
Please note that the Office version has to be greater than standard version (ie. professional or better).
Internet Explorer settings:
Your Internet Explorer settings might be altered in some way.
The above post goes through the settings required for ActiveX components to run properly.
Office Professional installed but still not working:
If you have upgraded Office 2003 to 2007 or 2010, then you might be having this problem because all of the old Office has not been uninstalled yet.
I would suggest you uninstall all versions of Office and do a clean install of the latest version your company uses.
Having no leftovers of the old Office should help.
No Office at all. What can I do?:
There’s 2 simple ways to get the component installed even though you do not have Office on the computer.
1: There is an Access Runtime 2010 which can be downloaded and installed, which should give you the same functionality.
2: The component can also be installed along with SharePoint Designer 2010 (yes it’s free). SharePoint Designer has both a 32- and a 64-bit version.
Oh and a reboot does help sometimes as well 
Any solutions left out? Please comment below.
Related posts:
- One or more field types are not installed properly after upgrade from SharePoint 2007 to 2010
- Insert Picture From SharePoint Button Disabled /Greyed Out – SharePoint 2010
- Open links in a new window – Sharepoint 2007 and 2010
- Hide the QuickLaunch in SharePoint 2010 (and 2007)
- How To Add A UserControl To A Web Part In SharePoint 2007
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