I now find myself with more problems with 3.02 than I ever had with 2.9.4.

I find this a bit tedious, now having to chase unrelated issues to what I had in the beggining.

Can't upload images even though they are png.  I get the error: This is not an image file! Tried JPegs too.
Can't Browse Server, nothing happens when I click the button
Can't select Joomla menu Items or Articles...nothing happens when I select there either.

Looking at all the issues you've been having with 3.02. I think the upgrade suggestion was just lazy.

I now find that the reason I can't select things or click on browse server is because of the mootools upgrade plugin conflicting with FPSS

What a palava!

Finally fixed or resolved most of issues.

FPSS only accepts JPGs not PNGs.

Still have rendering issues in IE where FPSS navigation buttons are larger somehow by about 3px and so cause side scroller to appear.

FPSS accept png images as long as you don't use the resize option in FPSS component /slide parameters.
Which means you should fix your images to the slideshow dimensions before you upload them.

Issues in IE seems to be css conflict issues with your template -check it by turning your template to the default joomla template.
If it is conflict you must contact your template provider for help.