I just found the issue to my problem! Just encase anyone is interested it was caused by my IIS settings for anonymous authentication. It appears that chrome currently does not like it when anonymous authentication is disabled and you try to use this AJAX uploader.

 

Considering I require anonymous authentication to be disabled on our dev site this is a bit of an annoyance, but as other browsers work just find with this and our live site works and will work fine I'm ok with it.

 

Regards Lee,