When I upload an image (apart from the image uploader still being broken), and then add the image to a post, it doesn't appear in 3.7.1. Furthermore, on the page, it doesn't appear on the post page.
I have no problem with permissions. The image uploads correctly and I can see it by grabbing the URL out of the page code when I view the post.
WordPress is assigning an image size of 1 pixel width and height to uploaded images in 3.7.1. I can go into the code and fix the sizing, and things work, but the site I'm looking at is for my niece who doesn't have those skills (and shouldn't need them).