Theme disables featured image/insert into post?

Hey all,

I have a site running on the latest version of WP with the Minimatica theme, but I recently ran into an issue with images. When editing a post or a page and going to insert an image, the “Insert into Post” option normally present when viewing an item in the media library is gone. For pages, there’s no “use as featured image” either (though there is for posts).

I’ve tried disabling all plugins and it didn’t help… however, when I switched themes back to the default TwentyTen one, the featured image function returned for pages, but the “Insert into Post” buttons were still missing.

EDIT
I have done the automatic re-install of WP and it didn’t help. However, two other things to note: there seemed to be an issue with the media library originally, as I had to install the “Hotfix” plugin just for images I had upload to appear. Also, if when I go to insert an image, if I upload from my computer (and not use an existing ML item), it shows me the “Insert into Post” option (but not featured image option).

Any ideas would be greatly appreciated — thanks!