First off, I love this plugin and your service so thanks for everything you do to make the web a faster place for us all. I've used your plugin for about 2 years now with no issues. However, I recently updated from WP 3.3.1 to 3.3.2 and started encountering issues uploading images through the WordPress Control Panel. Images would upload about 50% of the time. The rest of the time I would get timeouts, HTTP errors, or FTP error messages. As soon as I disabled the Smush.it plugin, image uploading started working again.
Can you please release a patch as I would love to continue using your plugin, but cannot in its current state.