Jay,
It seems to be working for you. I assume that you are uploading the pictures from your computer with the Manage Attachments shown below the posts. When I try it everything seems to work except it then says File failed to upload or something like that. Anyway the new My Photos using the Insert link is much faster and you can chose the size of picture you want in the post as it goes to your gallery and pops up a page showing your pictures there. And you can do more than one in a post using this also.
Ron