This is great plugin, and I've been using it for a couple of years.
A client of mine has managed to break this plugin, well the workflow at least. Here's how it can be reproduced:
1. Create a post, insert images. Save the post as draft.
2. Rename the post save as draft
3. Come back to the post a day later, and publish. Broken links, and an angry client.
Sounds like it could be a bit of work to fix this plugin as it would need to magically fix the links in the post content. Some kind of preg_replace could do it.
Simon.
