I’m having the same problem. I’m also one of those people who had to disable the visual editor because that wasn’t working.
I’ve reinstalled. I’ve deleted all plugins (not just disabled). I’ve tried working on the default template before re-enabling the one I’ve chosen and nothing seems to fix this.
The really frustrating thing is that I can not upload photos to the site.
I have three other wordpress blogs all using the same version and they work. I cannot see anything different about this–I have one other one on this same host.