“Press This” and images

Press This seems to work for me for everything EXCEPT for the ONE thing that I actually NEED… :-\

Image insertion.

I’ve added the bookmark to my browser (tried in both Safari and Firefox, btw) and it does open the pop up window. Highlighted text also works.

But when I click on the “add an image” icon just below the post title, I get the spinning wheel and “Loading…” and the images on the page I’m trying to blog about NEVER get populated.

Any idea? This is very limiting without it… ??