Hmmm, This is getting all too weird now.
OK, I think I did it as you guys instructed but it's still saving the files in the folder as just .jpg with no filename. It does save the full client filename in the database columns though.
Here's what I did:
In the insert record I changed the value on the file upload field to the name of the file field.
In the DFP upload wizard I changed the full size and thumb filename settings to client file name.
The rename if existing file naming is set to [filename]_increment.
Is that the way you were suggesting or did I miss something?