I just came across this issue with my manager and thought I would share what I learned.
If you choose to upload a document and do not see the link 'Upload multiple files…' below the textbox or upload link on the document library , there are a couple things to consider. Keep in mind.
To upload multiple files, you need to have Office 2003 installed on your machine.
Three are 3 dll's that are used as 'add-on's for SharePoint
Name.dll, Owsclt.dll, and Stsupld.dll
It is the stsupld.dll that is responsible for the multi file uploadcapability.
Make sure you have the stsupld.dll on your machine and properly registered. Try re-registering the dll if you are still having a problem or re-install Office 2007.
My thanks to brian who gave the above solution.
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