I have an updated apk - tested successfully on various devices and simulator instances - with the following manifest:
i have problems too with the publisher page
...The server could not process your apk file ...
In the app overview it says (in red) that there is a draft of the new version but in "APK-Files" tab the new version does not show up.
From time to time the app does not show up in the app overview at all.
Update: the problems i experienced where solved the next day.
I've found that the Market is usually experiencing problems. Visit the Known Issues page for Market Developers:
https://support.google.com/androidmarket/developer/bin/static.py?hl=en&page=known_issues.cs
I was struggling with this exact issue. I was using the old style google developer web interface. Then I decided to click "try the new design" to switch to the newer one. Then when I attempted an apk upload, it failed, but at least this time I got a detailed error report.
I had the same error. Deactivating the original APK and then uploading the update helped.
I experienced the same problem that is, "The server could not process your apk. Try again" when i tried to upload .apk file in Google Play by last week (from India). After a long struggle I successfully uploaded my .apk when i did my upload from one of my friend's machine, (who is residing at US) through remote desktop.I think that the cause would be the location where you do your upload, that is, your nearest Google Server may not have enough space or in some server problem or in some server environmental limitations. Hope it will help you guys...
In the end, I removed the upgrade ... which ended up removing the upgrade from the queue and unpublishing v1.0. I quickly republished v1.0 (which was still present in the Marketplace), then posted the upgrade again.
This time it worked. No need to bump versionCode up to 4. Icon was visible too. Didn't do anything differently.
Update published. Yaaaaay!
File this under unsolved mysteries for now. Leaving this here in case others run in to the same problem.
Update: See Nate Bross's comment to the original question. Possibly some Marketplace server hiccups. Nothing official from Google yet, but it looks like I'm not the only one who ran into upgrade issues today.