Since the iCloud beta, my iOS devices refused to upload to the server. After the web version went live, I was forever stuck at "Preparing Library." (about 2 months) After working with Apple support, this is what happened.
1: Create a test iCloud account.
2: Sign out of iCloud on your iOS device, sign into the new account
3: Check and see if your photos upload and the web site displays them.
4: Contact Apple support
5: You'll quickly get escalated to the next level. Most likely, they will ask you to reset your iPhone. If steps 1-3 worked for you, tell them what you did.
6: What ended up solving the problem for me was having Apple Engineering reboot my iCloud photo Library.
Hopefully, if you are having the same problems as I did, this will help you get through Apple support quickly.
1: Create a test iCloud account.
2: Sign out of iCloud on your iOS device, sign into the new account
3: Check and see if your photos upload and the web site displays them.
4: Contact Apple support
5: You'll quickly get escalated to the next level. Most likely, they will ask you to reset your iPhone. If steps 1-3 worked for you, tell them what you did.
6: What ended up solving the problem for me was having Apple Engineering reboot my iCloud photo Library.
Hopefully, if you are having the same problems as I did, this will help you get through Apple support quickly.