Error #2060 Can’t Import Images

When I try and add an image I am able to select it but as soon as I ask it to put it into my rich text editor I am asked to authenticate against my site again, I then have to reselect the image and then when I ask it to insert it into the rich text editor again I get a blank white screen. I have tested this on 3 machines, 1 Linux and 2 window machines which Firefox and safari and get the same result. I have verified the media-upload.php file is in wp-admin. Any advise on how to troubleshoot this would be appreciated. On my XP box I was able ot get it to throw an error for me (within Firefox). I get the error as soon as I select that I want to add an image from the rich text editor. Thank you!

SecurityError: Error #2060: Security sandbox violation: ExternalInterface caller http://mydomain.com/wordpress/wp-includes/js/swfupload/swfupload_f9.swf cannot access http://www.mydomain.com/wordpress/wp-admin/media-upload.php?post_id=-1207745961&type=image&.
at flash.external::ExternalInterface$/flash.external:ExternalInterface::_initJS()
at flash.external::ExternalInterface$/call()
at ::ExternalCall$/Simple()
at SWFUpload$iinit()