cate,
The code Paul refers to would be in a custom Event Receiver or Workflow.
Basically the code would:
break the permissions inheritance from the library to the item
set the permission on the item to "Full Control" (or a custom permission level) for the uploader user
(note that the uploader would only need typical Contributor rights to the library. The code customizes the rights for the just uploaded item)
An example of that kind of code can be found in this discussion:
http://social.technet.microsoft.com/Forums/en-US/sharepointworkflow/thread/aa35ded5-c5b5-43a4-a3ac-f72b1b4c302fSharePoint Designer workflows cannot do this out of the box, but codeplex.com and samples of custom SPD actions that can.
Paul,
Your blog/feedreader URL in your signature does not work (at least for me). But I found it anyway with a search... good stuff there!
Mike Smith
TechTrainingNotes.blogspot.com