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Oh ok,

here is what they said “upload_max_filesize 64M”

http://hp75.hostpapa.com/phpinfo.php

Not sure if that sheds any light on this. Also even more strange, I have another site with this same host where I don’t experience this problem. Yet I’ve re-installed several times on this domain and am still experiencing issues with out any plugins and the standard WP theme.

@swansonphotos thanks for the advice, though I checked with my host and their PHP memory limit is 64mb.

To clarify the photo uploads and appears in the gallery fine, but when I try Insert it, nothing happens. If I copy the url, then use the Insert From URL function then it works.

So there is a strange issue with the direct Insert Image function.