Hi,
I noticed a difference between how the insert image feature works on IE versus Firefox. See the uploaded video. Note how under IE (IE7 in this case), several of the control icons are available at top right on the Insert Image pop-up. However, under Firefox, the same pop-up displays these icons initially and then they become lost.. I made sure that I disabled all Firefox addons before creating the video below.
Let me know if questions.
Regards,
Kazzlo