Hello Manu Khurana,

1. Upload -
It seems like you hitting this error There was an error uploading this file to the server. is mostly because the upload_max_filesize reached the limits, to fix this, you have to consult with your Webhosting provider to help you increase this php information upload_max_filesize to 20M.

2. Directory installation -
It seems like you didn't have extract the installer zip file from your temporary folder.
Can you try follow this documentation and see how it goes?
-> http://stackideas.com/docs/easyblog/installation/installing-from-directory

If you're still facing the same error after you did my 2 method suggested at above, can you provide us with your Joomla backend and FTP access so we can help you check on this? Please advise.