We have worked with 3D cart for some time and thier system is an affordable hosted solution. I am not sure about the photo upload functionality, but you can customize thier templates as much as you want and quite easily. Check out thier chat and ask about the photo upload.
Their system is so easy to use, it may be worth it to have them custom build an upload feature for you if they dont already have it. You can check them out at
Shopping Cart Software, Online Store Software, E-Commerce by 3DCart (and no, I do not work for them. We have used thier system for several of our clients)