Last week I mentioned that I was having problems with comment moderation since upgrading to WordPress 2.7. Well, I was also having trouble with the flash uploader. I would get an error and have to use the browser uploader. Not a big deal but it annoyed me and slowed me done because I could only upload one image at a time.
So, I also decided to tackle this when I did my WordPress spring cleaning and I found a solution that worked for me.