I'm using WP 3.5, and after the update to AutoAttachments I'm not able to insert links anymore, in the edit/add new post page.
It seems to be something related to jQuery, here is a printscreen of what I'm facing: http://img20.imageshack.us/img20/7049/6xtr.jpg
I tried to deactivate Auto Attachments and all went normal. So for sure it is a problem with this last update.
BTW: great plugin!