I've researched this for weeks, but I can't find any other examples:
We recently upgraded to 3.0.1, we can upload images fine, the thumbnails show up in posts fine.
But when you click on the image to enlarge it, instead of the image, the screen fills with characters, apparently the IPTC metadata, interspersed with black diamonds with white question marks.
HERE'S A LINK to one of the images showing the problem.
However, the image appears normal when downloaded from the FTP folder:
/wp-content/blogs.dir/4/files/2010/10/how-to-grow-up-rule-the-world.jpg
I've checked and updated the htaccess file for 3.0.1.
We can show the thumbnails in the posts without a problem, but we have to remove the Link URL to prevent readers from clicking and seeing this problem. That of course prevents better viewing of photos, and prevents us from effectively using NextGEN galleries — anything with images.
Any suggestions much appreciated.