A lot of people seem to be having the problem.
I got it to work by using Firefox, instead of Internet Explorer.
USE FIREFOX — not IE
I was able to “upload” images into Media Libary, but it was IMPOSSIBLE to put anything into the actual post with IE. But it seems to work fine with Firefox.
Using Firefox, click “Add Media” at the top of the Text Editor, then go into the Media Library, and click on your images. That should open up another box that will allow to get images into your posts.