We just updated the Cute Editor last Wednesday (2/ 15/12) and the first report of this problem came in on Thursday I believe.
This problem is intermittent. This problem may be isolated to Windows XP machines, machines running IE8 or a combination of the two.
IE Dev tools showing the error from a Windows XP machine running IE8.
Error message received in various places while trying to upload an image.
Error? Random, unexplainable error message that I'm not sure if it's related to this or not.