Hi, just posting to thank everybody – I had the exact same problem, and Peter Westwood’s plugin fixed it in a jiffy.
JohnMag4u: “Send to Editor” is supposed to insert the image into the editor. In HTML mode, it inserts the correct <img ...>
code, while in the normal editor, the image is directly inserted into the image. I’m not sure how good the feature is on cross-browser compatibility, though.