Hi gang,
It’s a “permissions” thing. Here’s what I did.
1) First try — couldn’t upload photos because the directory on the server wasn’t writable by the server (actually, wasn’t even there). WP told me that, so I went and added “write” permissions to the /content/uploads folder. If you haven’t already done so, make sure you create that folder first, WP doesn’t do that automatically for ya.
2) Second try — symptoms just like what y’all are describing. I could upload fine, but when I inserted the picture in the post I got a blank screen, all I could do was close it, and the picture didn’t show up.
3) Solution — I added “read” permissions (in addition to the “write” permission I’d done in the last step) to the /content/uploads folder. ‘Turns out that the server needs to read stuff from there in order to complete it’s job. Made sense, once I’d gotten it going.
Works a treat now.