I have 2 blogs, pretty similar. However, since I put the fix in for the password reset exploit on one I can't utilize the flash option to upload pictures from my computer, goes to a login screen within window.
The blog is at: Toogeekyforyou.com
It's self hosted, just been upgraded to 2.8.4, I initially manually edited the wp-login.php then I let WordPress upgrade from 2.8.3 to .4 after I tested that the flash upload still isn't working, I pulled just the wp-login from the install files and replaced it.
What happens is I upload a picture, it completes "crunching" it and then it goes to a login screen within that window, if I log in, it takes me a screen asking "are you sure you want to do that" and then please try again link to log back in.
I can still upload via browser way just not flash, any ideas?