Looks like they're quite a bunch of people with image uploading problems when posting articles. I would even try this in 2.5.1
This may help a few people out considering it worked for me.
In your index.php file change "<?php the_excerpt... to <?php the_content...
:)
How does it help with image uploading?
People have had problems when posting articles saying that the article is posting- but the images are not showing up.
This happened to me too but was corrected after I made that change.
I guess it doesn't really help image uploading.
Perhaps I should have titled it " Showing Images in posts"
Here's a link to the conversation that helped me fix it.
http://wordpress.org/support/topic/181003?replies=6