error message displaying when field isn't empty

[James]

Hi. For some reason when I choose to update details in a database, a field which displays the image name stored in a database is deemed to be empty when it isn't empty. Any feedback would be much appreciated.

 
<?php 
 
                if ($error == true)
                    {
                        echo '<div style="padding:5px 10px 5px 10px; margin-top:20px;  border:2px solid #FF0000; color:#FF0000; width:345px;">'.$error.'</div>';
                    }
 
            ?>     
 
            <form id="edit-form" action="" method="post" enctype="multipart/form-data">
                <input type="hidden" name="id" value="<?php echo $id; ?>" />
 
<table>
<tr>
                            <td><strong>Photo <span class="red">*</span></strong></td>
                            <td><input type="hidden" name="size" value="350000" /><input type="text" value="<?php echo $photo; ?>" /><input type="file" name="photo" value="<?php echo $photo; ?>" /></td>
</tr>
 
 

<?php
 
    include('connect.php');
 
    if (isset($_POST['submit']))
        { 
 
            if (is_numeric($_POST['id']))
            {
                $id = $_POST['id'];
                $price = mysql_real_escape_string(htmlspecialchars($_POST['price']));
                $rooms = mysql_real_escape_string(htmlspecialchars($_POST['rooms']));
                $address = mysql_real_escape_string(htmlspecialchars($_POST['address']));
                $description = mysql_real_escape_string(htmlspecialchars($_POST['description']));
                $photo = (mysql_real_escape_string($_FILES['photo']['name']));
 
 
                    if ($price == '' ||  $rooms == '' || $address == '' || $description == '' || $photo =='')
                    {
 
                        $error = 'ERROR TRYING TO UPDATE RECORD: Please fill in all required fields';
 
                        form($id, $price, $rooms, $address, $description, $photo, $error);
 
                    }
 
                    else
                    {
                        $folder = "./houses/";
                        move_uploaded_file($_FILES["photo"]["tmp_name"] , "$folder".$_FILES["photo"]["name"]);
 
                        mysql_query("UPDATE house_info SET price='$price', rooms='$rooms', address='$address', description='$description', photo='$photo' WHERE id='$id'")
                        or die(mysql_error()); 
 
                        header("Location:admin.php");
 
                    }