upload functionality to a post for all users

I’m looking for some functionality that already seems to be in wordpress however I am unsure of how to call upon it, and how to go about doing it.

I’d like an upload form on my website where registered users only can submit a file. The file they submit (most likely artwork, but is not limited to an image) is going to be a post. So once they submit, the body of the post will be the file, and the other fields like the title will be filled in by the user. Except the category (and time, etc), I want to have one category for the posts. It’s for a contest submission.

In addition, I want it to be approved before it shows up in this category. However I want all users to be able to submit, but since I don’t want users creating other posts, they have to be a level one I think?

The posts will act as normal, with people being able to comment on them. etc.

The site is: http://thrivethemagazine.com/ it’s a school student based magazine for Tampa. I customized the website from the default theme (yes I’m a student) and I’m a little stuck on how to begin. I know how to upload things via php manually just fine, but if it’s already in wordpress, why do extra work?

The alternative would be to just have an upload form and then have me submit them manually, but we want to create a database of students with their posts (their work) and things of that nature.

I guess I’m just looking more for direction than anything else at this point. Any suggestions or better direction?