Is it possible to hide the parent folder (go up one level) in the image dialog?

Yes, please open the InsertImage.Frame.aspx.

 

And change the following code:

<asp:Label Runat="server" ID="FolderDescription"></asp:Label>

to

<asp:Label Runat="server" ID="FolderDescription" Visible="false"></asp:Label>

 

 

Thanks for your help!

I actually needed to hide the navigation links below that...which works by setting FoldersAndFiles visibility to false in InsertGallery.Frame.aspx