Not sure what's up with your server. postupload=convert -quality 80 ####OBJECT#### works just fine on my box. What has a bigger effect on file size is the resizing operation itself.
My original was 1158KB 1536x1024 pixels. End result is 133KB 800x533 pixels. Resizing alone, without quality change gives me 139KB. Without the resizing, using only the postupload quality setting, file size is still 367KB.
Run the upload page with full debugging turned on to see if your postupload command is throwing any errors.
You can laso try leaving postupload blank and just putting the quality setting in the pic_resize option:
pic_resize=800x800 -quality 80This worked equally well for me.