Ok, finally got it working. What did it was emptying out "/wp-content/uploads/js_cache" and uploading a fresh image to the Gallery.
So here is everything I did:
-Glitzfisch's code fix
-upgraded to the latest flash
-disabled all plugins (although it works now with the plugins enabled)
-cleared any files out of "/wp-content/uploads/js_cache"
-cleared the cache out of firefox, closed the program, rinse and repeat.
-delete images already uploaded to the gallery and upload new ones.
Hopefully others get it working!