I've got a possibly related problem...possibly not. Flip a coin, but it's an icon issue and I figure somebody else encountering it in the future might find this thread when searching.
Just activated my forum account last night and I'm not having any trouble with the uploading per se, but my image does not seem to appear on the forum posts I made last night, before uploading said image. (Refreshed, restarted and switched browsers from IE to FF since.)
Posting this right now to test whether it appears on a post only after uploading -- will edit with results and post further...
_ _ _
The results: Wow.
There it is, but still nothing on the old posts. That's an interesting quirk PHP doesn't have. Okay...so I've learned something. If this is something that can't be changed to update old posts...perhaps a note on the image upload page would be advisable to avoid confusion?