curl http file upload post

["webmaster" <webmaster@xxxxxxxxxxxx>]

I am trying to upload a file to a remote server using curl and post method 
here is what I have:

    $file = $dir."".$dbfile[0];
    $this->invoiceno = $dbfile[1];
    $uploadpath = "http://www.website.com;
    $postvar = array ();
    $postvar['cboFileType'] = "837";
    $postvar['txtDesc']  = "Invoice No. ".$this->invoiceno;
    $postvar['btnSave']  = "Upload File";
    $postvar['FILE1']   = "@$file";
    $postvar['UPLOADING']  = "true";

    $this->postvariables = 
"txtUserName=".$this->user."&txtPassword=".$this->password."&btnLogin=Log 
In";

    // login first
    $ch = curl_init();
    curl_setopt($ch, CURLOPT_URL, $this->login_post);
    curl_setopt($ch, CURLOPT_USERAGENT, $this->agent);
    curl_setopt($ch, CURLOPT_POST, 1);
    curl_setopt($ch, CURLOPT_POSTFIELDS, $this->postvariables);
    curl_setopt($ch, CURLOPT_RETURNTRANSFER, 1);
    curl_setopt($ch, CURLOPT_FOLLOWLOCATION, 1);
    curl_setopt($ch, CURLOPT_REFERER, $this->reffer);
    curl_setopt($ch, CURLOPT_COOKIEFILE, $this->cookie_file_path);
    curl_setopt($ch, CURLOPT_COOKIEJAR, $this->cookie_file_path);
    $results = curl_exec ($ch);
    // upload file
    curl_setopt($ch, CURLOPT_POST, 1);
    curl_setopt($ch, CURLOPT_POSTFIELDS,$postvar);
    curl_setopt ( $ch, CURLOPT_URL, $uploadpath);
    $uploaded = curl_exec ( $ch );
    echo $uploaded;

I think my problem is that the file I need to upload is not in the same 
directory on the server as this script. I am setting $file = 
/var/www/include/upload/test.txt and this is what seems to be causing the 
problem. I can find very little information on this topic on google so I 
need your help. Do I need to copy the file to the same directory that the 
script is in or is there something else I am missing? If I just set $file = 
test.txt how would the server know where to find the file? 

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