Frankly I am tired of the Flash based image uploader. It doesn't work most of the time, when it works it is pretty unstable, frequently fails on Opera, doesn't work (for me) on Firefox in Linux even with latest Flash, doesn't work with .htaccess fix and more. In short it is simply not worth it. You are much better off without the Flash based image / media uploader in WordPress 2.5.1. There is a simple way you can disable it and forget it.

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