yes, same issue ....... plus another one
1. click on the second image (dunes 200x131)
2. go to img properties
3. click on "browse" (if path shows "http://phphtmledit.com/" remove everything before /Uploads or you'll get a 404 error.)
4. click "upload files"
5. choose a file with the same name (ph02366j.jpg 80x76) on your hard drive
6. on upload, IE will still show the original file with the width/height adjusted to the original file 200x131 even if the inserted image had been resized.
7. the only way I was able to get the new image to actually display in the editor was to flip to preview and back.