Hello Dave,
The image uploader works, there was just a quirk that you were experiencing. If you had an image with the same name that you had removed it wasn't showing the image. This should be fixed now.
When you remove an image it doesn't delete the image from the system it just hides it. Main reason is because if you use an image in a post for support other people will need that image later if the post is going to be helpful for people in the future.
Before if you uploaded an image with a name that already existed it would overwrite the file, now it renames the new file to an unused name.
Abraham
