Contributed By: Narayana Mahankali [MSFT]
To use BITS for uploads the following are the requirements:

1. The server to which files are being uploaded should have IIS 5.0 or IIS 6.0 and the BITS server extension ISAPI should be installed. This is required if you want to use HTTP as the protocol. If you want to use SMB as the protocol (available only with BITS 2.0) then you don't need IIS or BITS ISAPI.
    
2. The client machine needs to have BITS 1.5 (if only HTTP is used) or BITS 2.0 (if SMB is desired).
    
3. Your application needs to programmatically use the BITS API to actually upload the files.

For information on how to set up the server for uploads look at:

http://msdn.microsoft.com/library/en-us/bits/bits/setting_up_the_server_for_uploads.asp

For more information on BITS look at:

http://msdn.microsoft.com/library/en-us/bits/bits/bits_start_page.asp