Here’s a thread on that topic. It boils down to a custom taxonomy being named ‘type’. I had the same problem. When I renamed my taxonomy from ‘type’ to ‘kind’, the Media Library under Set Featured image came back. I can’t guarantee that this is your problem, but it seems likely.
http://wordpress.org/support/topic/no-images-displayed-in-media-library-under-set-featured-image
I have the same problem. This would be a great plugin if I could compose a message!
My flash header also shows up one pixel off in IE, but shows up fine in Firefox. Has anyone figured out why? I’m using the default theme with replaced images. My header is 760×200.
