New Edit Image Feature won’t work – wordpress 3.0

I upgraded my WordPress to 3.0 this morning, and now all of my images are gone.
If I try to create a new post, and insert an image – I get a pop up box that says Edit Image and doesn’t show the image until I click the edit button.
I don’t want to edit the image, I just want to insert it.
So if I just click insert – the images shows up the the visual window – but not in the preview, nor in the published post.
I have deactivated all of my plugs ins – as per an earlier topic here – but that has not resolved the problem.