WP3 Image problem

I have got two problems one of which I can work around.

The first problem is that I get a HTTP Crunching error when using the Flash uploader.
I have looked at all the threads on here but can’t find a solution that fixes this issue.

The second problem is very odd!
I need to use an image a client had sent to me, so I uploaded it into our library. When the image is uploaded I can see it’s preview where you can enter more information in the text fields. I then Insert that image into a page or post but it does not display…
I checked the path and everything I could, but I can’t see anything wrong.

To test a theory I uploaded an image I have taken…… IT WORKS!

The only thing I can think of is that the images my client has give me have some type of meta information in them that WP does not like.

Has anyone got an ideas?