This is an extremely distressing problem. The No-Flash-Uploader plugin doesn’t work for me; it shows as activated, but it didn’t disable the flash uploader and I still have no way of uploading photos. Do I need to revert to an older version of WordPress just to be able to upload photos? I can’t remember ever seeing such an obviously troubled feature go live in a WordPress release before.
You really can’t run a blog without the ability to upload images. I’ve tried the solutions offered in the pinned post, and they’re simply not solving the problem. I don’t know what to do.