I downloaded WP 2 today and got it running. It appears to work fine in all respects except for the image uploading. First of all, I only get an "Upload" tab under my text editor on the "Create New Post" page. I can select a jpg to upload but nothing happens. No thumbnails or confirmation of any kind. The only way I can verify that the files are being uploaded are by browsing down the wp-content folder hierarchy (into year then month). So the files are uploading but I'm not getting the thumbnails or image browser that I hear everyone talking about.
Surely, I'm not supposed to remember the url's and type wp-content/uploads/2006/01/blah.jpg in order to embed them manually, should I?