I’ve been having the same problem. I’ve tried to nail it down within Geo Mashup to see where it fails but I haven’t really succeded yet. I find it hard to do real debugging in validation scripts. The reason the image is deleted is because TDO sees that something has gone wrong in the uploading and therefore deletes the post (and the image). I get this line in the log:
[Leo Fidjeland][01-03-10(22:57:04)] Post widgets report error! Attempting to delete [id] post…
Tell me if you come up with a solution!
