mikehobin

yep, just upgraded and looks to be OK now, thanks heaps!

ok, I tracked this issue down for those that care.

The issue is caused by the SmishIt Plugin not responding as quickly as WordPress natively.

Turn off smushit and all is OK, turn it back on and the issue keeps occuring.

so here is my fix

$imagedata = array(
    'name'  => basename($image),
    'type'  => 'image/jpg',
	'bits' => new IXR_Base64(file_get_contents($image)),
	'overwrite' => 1);

	$client->query( 'wp.uploadFile', '', $user, $passwd, $imagedata);
	$ret = $client->getResponse();

	while (!is_array($ret)) {

		usleep(500000); // sleep for half a second
		$ret = $client->getResponse();
	}