As the Attach tags bug is not yet resolved, and as I thought I should spread my wings a little bit, I have been attempting to use the picture uploader, both by using the link under 'Goodies' and the red 'eject' button in a post, mainly so I can insert pics where I want them in posts.
Both have given me an error message as per the attached pic (which, as you can see, shows I can still use the attachments manager):