Hey guys,
I’m running WP 2.9 on Windows Server 2003 with PHP 5.2.6… After upgrading to 2.9, I did not see the “Edit Image” button either. However, I was able to fix the problem by editing my php.ini file and removing the semicolon next to extension=php_gd2.dll in the extensions section. Make sure to restart IIS to load the new config.