OK couple of things…
On the upload image. Do you see anything change? It _should_ bring up a window with the WordPress upload dialog.
From there inside that WordPress upload picture you scroll down a bit and press the insert into post.
If you aren’t seeing the WordPress upload – well the only thing I can think of is it is something to do with SSL. If you have “FORCE_SSL_ADMIN” enabled in your config then the link to add a new item is _supposed_ to be an https link. So on the add an item page let me know if it is a https page or http. If it is http try forcing it to be an https page and see if that changes it.
As for the items not showing up… I can’t think of anything right now. I think I’ll try to integrate some kind of debug dump this weekend. Then you could send that to me and I can see what’s going on in the lost and found table…
In any case I’ll also run some tests myself and see if I can figure out what might be happening.
Thanks