Publishing via FTP or HTTP has changed with the introduction of Vista and
IE7, and there aren't any clear and proven instructions available. My
suggestion is that if you are not going to use a form, then use FTP
uploading. Consider downloading and installing the free FTP client
FileZilla: http://filezilla-project.org/  It is likely to be easier for you
in the long run. Take the time to also download the excellent documentation
and read it.

Also if you want there is another way to use FTP uploading, but not through
IE7. Go back to the article: Prepare, publish, and maintain your Publisher
Web site:
http://office.microsoft.com/en-us/publisher/HA100947601033.aspx
It is written for Pub 2007, but if you are using IE7 instead of IE6, then
the directions for using Vista would apply. Under the section "Publish a web
site by using FTP", click the + sign and expand. You will get instructions
on how to "map a network drive". Though this is for FTP uploading, my
understanding is that you also have to "map a network drive" for HTTP
uploading too.

To get a more thorough understand, this topic was discussed at length a
couple times thus far...yes, you aren't the only one having this problem....
Reference this Google groups link to a thread:

http://groups.google.com/group/microsoft.public.publisher.webdesign/browse_threa
d/thread/7f18582e911727a3/2b1653101f5df1a5?lnk=gst&q=filename+is+too+long+or+con
tains+illegal+caracters#2b1653101f5df1a5

The OP had to install a patch from MSFT before he was finally able to get
HTTP uploading working again.

Like I said, unless you are using a form, switch to FileZilla...tis a whole
bunches easier. Sorry there isn't a better answer.

DavidF