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It looks like SpecialUpload was reworked in 1.16. Unfortunately the upload description is no longer available to other extensions (via hook).

This breaks the SelectCategory extension - the selected categories never end up in the image:... page because SelectCategory can't add them to the upload description. 

Therefore I propose the following patch:

Index: includes/specials/SpecialUpload.php
===================================================================
--- includes/specials/SpecialUpload.php (Revision 71214)
+++ includes/specials/SpecialUpload.php (Arbeitskopie)
@@ -31,7 +31,7 @@

        /** User input variables from the "description" section **/
        public    $mDesiredDestName;    // The requested target file name
-       protected $mComment;
+       public    $mComment;
        protected $mLicense;
 
        /** User input variables from the root section **/


If you want to fix this really backwards-compatible, there's another issue:
Older versions of Mediawiki used $m_pageObj->mUploadDescription   *)
In 1.16 it is named $m_pageObj->mComment.
Reverting this name change would be nice ;-)

*) $m_pageObj is the object passed over in the UploadForm:BeforeProcessing hook