Ok, I have done a fresh installation with dnn 3.2.1 and I get the following errors with the following buttons:
Spelling button gives a 'security exception error'
Second 'insert image' button and 'downloadable files' gives a security exception (the first insert image button works as does the insert flash and insert media buttons... they all work fine. )
Insert Template button gives an error saying... "Cannot find a part of path C:\Inetput\wwwroot\portals\0\templates
Have applied full control the asp.net account... for all folders.
Don't know what else to try or how long before I have to just give up.