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WordPress 2.7 has this feature

In current versions of WordPress this feature is core. This plugin has ceased with updates and is available for those users of WordPress 2.6.5 and older.

Does this plugin work properly?

We have been using this plugin for several days with only one small issue. When on the "Manage Post/Page" area, bringing up the Uploader seems to add additional close buttons equal to the number of posts/pages available.

Does this plugin act just like the regular Uploader?

Yes, it uses the exact code. This is merely a shortcut.