These should be your settings if your cms files and folders reside in 'PowerCMS' folder in the root directory:
$WAGLOBAL_Root_URL = "http://www.xm496.com/PowerCMS/" ; //Absolute path to your site folder.
$WAGLOBAL_Site_Name = "XM496 Admin" ;
$WAGLOBAL_localRoot = "/PowerCMS/"; //relative path to your PowerCMS files on your local testing server.
$WAGLOBAL_remoteRoot = "/PowerCMS/"; //relative path to your PowerCMS files on your remote server.
//iRite Images upload settings
$WAGLOBAL_Images_Folder = "images/"; //relative path to your images folder.
$WAGLOBAL_Swf_Folder = "swf/"; //relative path to your swf folder.
// Admin Settings
$WAGLOBAL_Admin_UserName = "****r" ;
$WAGLOBAL_Admin_Password = "****" ;
Also make sure you have applied the fix available from your WebAssist Downloads Page (select the PowerCMS link, click on 'Known Issues' and download the 'PowerCMS: Support Fix - Image upload from the Upload tab does not work' zip file. Follow the instructions contained in it.