Just to add to this thread. I deactivated all my plugins and am still having issues. (I’ve tried it in IE7 IE8 (Both normal and compatibility mode) as well as firefox. After deactivating my plugins i still couldn’t upload images. I then switched my theme back to the default and it seems to let me. I’m guessing it might have something to do with the theme you are using.
i am also having trouble with the flash uploader – ie it’s not there! i did a clean install on my server of 2.8 (no active plugins) and its not there.
any ideas? i thought it could have been modsecurity but my host reckons its not. seems like it’s a flash or wordpress error only happening on macs?
my friend tested it for me on a pc and it works fine. mystery!!
This was happening to me, and it was the podPress plugin that was breaking it.
I de-activated it, and my gallery/media buttons work again.
I made a post on this in my bog. I was able to to make a list on what plugins may cause this issue with the image uploader.
Heres the link:
http://www.blogfixes.com/cannot-uploadinsert-images-after-upgrading-to-wordpress-2-8-4-blog-fix/