Follow up: api.php is using an outdated version of Imgur’s API URL. The line which reads
curl_setopt($curl, CURLOPT_URL, 'http://imgur.com/api/upload.xml');
should be changed to
curl_setopt($curl, CURLOPT_URL, 'http://api.imgur.com/1/upload.xml');
If you’re feeling adventurous, you may want to use version 2 of the API (more information from Imgur here), but you’ll have to change a few more things inside api.php. I would post my revision of the plugin but I’m not sure the API key used in the old code still works, so I’m using my own API key hard-coded into the plugin.
I’ve also attempted to clean up the code by merging it into one file and make it more consistent with the Add Media layout, but I’m a newbie at this and haven’t been able to get very far.