Arggg. Well, even though I read the “sticky” for this forum, I didn’t realize my Firefox or my co-workers’ had been updated to Flash 10. This explains why it still works in IE on one or two computers (because they are still at 9).
Here’s a workaround:
FIREFOX 3.0.4 with Flash 10:
Tools > Add-ons.
Plugins tab.
Find Shockwave Flash in the list.
Click Disable.
Click the X to close the window.
INTERNET EXPLORER 7 with Flash 10:
Tools > Manage Add-ons > Enable or Disable Add-ons.
(Be aware, there is a drop-down at the top of this window. It defaults to “currently loaded” stuff. You may need to go into the “have been used list” instead.)
Find Shockwave Flash Object in the list and click to select it.
Choose the Disable radio button.
Click OK.
This will change the way the button appears.
I hope this helps someone else. I hope WordPress 2.8 comes out soon (they said Flash will be out then). This is a real pain for web designers.
(p.s. My problem was also two-fold. I changed the upload folder from a 1 to a 2, but didn’t change the permissions settings for the folder. That’s fixed now.)