You are looking for Transfer on background by default settings, just below the Enable queue processing by default:
https://winscp.net/eng/docs/ui_pref_background

Well tried the reinstall and removed all the files and registry keys but it still wont use the queue.
Never mind I've now uninstalled it and using my old CuteFTP again which does use the queue.
Thanks for the replies.
As I wasn't joined here I will not get notifications of new posts. So it's not worth posting any replies.

Thank you ReyKenobi.

I tried that and it didn't work. I will now uninstall and reinstall to test the out of the box settings.

Since queue shows up by default, out-of-the-box in WinSCP, I am thinking you made some changes in Preferences due to which the default behavior has changed. I am fairly new to WinSCP, but I hope I am able to help.

Try and check the option "Enable Queue Processing By Default" under Preferences > Transfer > Background, and see if you can see the Queue.

Why don't the uploads automatically go to the 'Queue' area at the bottom of the main window. I have the Queue area enabled.
I can drag and drop files to the 'Queue' then click upload and you can see the progress, but if I just select the files from the directory explorer window and then click the 'Upload' button above that window they just start uploading with just the small 'Uploading' popup window.

To drag and drop seems to me to be a step to much. In a previous app I had this happened automatically.

Regards
Dave