govpatel – yes i have tried what you did and it did not work. I also tried every other suggestion I could find in this or any other discussion. I tried the master list, removing hotlink protection, disabling all plugins, switching themes, reinstalling 3.1, switching browsers, updating javascript, installing a different visual editor, defining cocanate script, and verifying permissions.
Still no luck!
I don’t know if it makes any difference but I recently moved my blog from a different directory on the same server. When I did, I had troubles with the images and solved it by removing the forced path for image uploads.
This is very frustrating and I am about to start up a new blog and possibly something other than WordPress.