Oh, BlobStoreHandler you didn't mention that in your original question.
Ok there is your problem.
I don't believe you can combine the two. If you are uploading to the Blobstore you can't do other form elements, as the upload is directed to the BlobStore service.
From the docs
The user creates a blob by submitting an HTML form that includes one or more file input fields. Your application calls create_upload_url() to get the destination (action) of this form, passing the function a URL path of a handler in your application. When the user submits the form, the user's browser uploads the specified files directly to the Blobstore. The Blobstore rewrites the user's request and stores the uploaded file data, replacing the uploaded file data with one or more corresponding blob keys, then passes the rewritten request to the handler at the URL path you provided to create_upload_url(). This handler can do additional processing based on the blob key.
So it's difficult to say exactly what is going on without seeing your code, but I seriously doubt you can do what you are trying to achieve.