it seems that in the latest version of wordpress (3.3), the wpg2 button which was previously showing when you added or edited a post, has been removed.
this is therefore not saying that the plugin is broken, but that the latest version has changed the way that it handles media files.
by changing from html edit to visual edit mode, the g2 button is still showing, therefore enabling it to function as previous.
a trick for newbies!
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