If you upgraded your WordPress blog to version 2.7 you may have discovered that the Flash uploader for images is no longer available for you.
The problem may be a missing swfupload.swf file in the /wp-includes/js/swfupload folder of your WordPress installation.
The solution is to upload the missing file to your web host using an FTP client. You can locate the file in the latest download of WordPress.
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Thank you very much!
thanks! I think this finally solved my problem!!!
This helped me out, too. Thanks!