Exactly the same here too. Any picture I try to upload, the following happens:
1. "upload images" option works and shows upload buttons.
2. I browse and pick image.
3. It shows progress % when uploading.
4. After 100% upload, screen changes and says "An error has occured"
I use Firefox 3.5.5 and XP SP2.
(Everything was working fine till a few days ago)
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