<form id="form-upload" enctype="multipart/form-data" action="url" method="post">
    <input type="file" name="image" id="image" />
    <input type="submit" name="salvar" value="Salvar" />
<form>

$('#form-upload').on('submit',function (e) {
    e.preventDefault();

    var formData = new FormData(this);

    $.ajax(
    {
        url: uma_url_qualquer,
        type: 'POST',
        data: formData,
        success: function (data) {
            console.log("sucesso");
        },
        cache: false,
        contentType: false,
        processData: false
    });
});

$('#arquivo').change(function(e) {
    var _arq = URL.createObjectURL(e.target.files[0]);
    $("#frame").contents().find("#div").css('background-image','url('+_arq+')');
});