It looks to me like your code gets the path of the file from the client machine, but then looks for that file on the server machine instead. And naturally it isn't there.
So that isn't how file uploads work. Your upload servlet can't just store the path where the file came from on the client machine, because it won't be able to access the file from there. It actually has to store the contents of that file (which are part of the upload) somewhere on the server. For more (and better) information have a look at our Servlet FAQ entry
FileUpload.