Index: page.inc
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/imce/inc/page.inc,v
retrieving revision 1.10.2.6
diff -u -r1.10.2.6 page.inc
--- page.inc	1 May 2008 14:03:27 -0000	1.10.2.6
+++ page.inc	7 Jun 2008 03:29:26 -0000
@@ -554,7 +554,7 @@
 function imce_validate_all(&$file, $imce) {
 
   //fix FILE_EXISTS_ERROR bug. core bug #54223.
-  if (variable_get('imce_settings_replace', FILE_EXISTS_RENAME) == FILE_EXISTS_ERROR) {
+  if (!$file->destination && variable_get('imce_settings_replace', FILE_EXISTS_RENAME) == FILE_EXISTS_ERROR) {
     return array(t('File browser is set to reject the upload of existing files.'));
   }