This plugin (v 1.0.2) interferes, on my installation at least, with the core image/media insertion function.
It recently started giving 500 internal server errors in the pop-up when I clicked the TinyMCE button (I think after the last update but cannot be 100% sure), and at the same time, I was no longer able to insert media/images into posts or pages, getting a 404 error in the pop-up. This is not a permissions problem as the upload happened, just not the link insertion.
Deactivating link to post has fixed the insertion problem.
I am not complaining as I can do the links manually anyway, but just thought it might save other people time if they found the same problem.