It works with an upload field, which is what you need for uploading a file. Part of the story is HTML5, and part is javascript, but it already works in web2py with all modern browsers. The app that expects pictures is at home, so I can't look at thumbnails, but I just tested it with another app here. Client was W10 (but should be able to go back to at least XP), Firefox 53.0.3, but should work back into the 30s. To do the test, I opened the page with form, switched windows to WinExplorer to select a file, left-clicked on the one I chose, and dragged it over the "Browse..." button for the upload field.
On the server side, I log the upload activity (beyond what Rocket puts into httpserver.log) which at the moment includes the size of the file and the id of upload table row.
/dps