I reported this same problem earlier (but now I can’t find the post…)
I was told to do a new, clean install of the final 2.5 wordpress, and I did. I’m hosted on Go Daddy, running XP, IE 7. I continue to get only one file upload as option.
I thought that it may be some sort of file corruption issue (because I have a bad connection), so I even uploaded the zip of 2.5 and remotely unzipped onto the server. However, I still see only the option to upload one image at a time.
Please, anyone, what am I doing wrong? I’m so frustrated after having fought with this for the past week starting with r2.