I figured this needed its own thread...
I used this fix to make image uploads work on IE:
Unfortunately, it didn't help me on Firefox, where I still get the Crunching status and nothing else ever happening.
Like I said, I can upload from IE in my XP virtual machine, but obviously I want to use Firefox on Ubuntu to do this stuff.
Anyone find a fix for this? I hope WordPress is working on this problem, it seems like a huge one. I wish there was a "standard" way to upload them instead of the Flash popup, so we could at least have a backdoor method in the meantime.