I think you're right, atlantageek. This is really a question of social engineering and trust. If you call it "convert" or "process", rather than "upload" I bet 99% of folks wouldn't have an issue with it.
If it were me, I'd just write it so that the subroutines I use to do the conversion unlink() the files right after processing. Maybe you could write a sub that opens and prints the document (with the correct mime-type, of course) to tbe browser, and as its last action it unlinks the file. (Don't forget binmode if you're on windows) As long as the user doesn't press "stop" and the download of the converted document completes, you should have no record of the file being there, and it's essentially a download once system.
-Any sufficiently advanced technology is indistinguishable from doubletalk.
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