file uploads with flatiron seems a bit of a mystery. I didn't find much information either. So here is my solution (as sticked together from pieces from the internet).
You have to turn buffer of in union / flatiron.plugins.http.
app.use(flatiron.plugins.http, {buffer: false});
And you have to turn stream on in your post route.
app.router.post('/form', { stream: true }, function (){});
Here is a gist with working code: https://gist.github.com/ichbinadrian/4971260