But I've removed the image insert button from the WYSIWYG since, as you pointed out, it's not working as advertised. I've replaced it with the image attachment module. This works, and makes on-the-fly thumbnails *but* you can only attach a single image and it, currently just sticks it at the top of the post. This'll have to do for the (very) short term until I can rollout our longer term image solution.

Let me know if this is worse or better...  Thanks,