Here was my fix when I ran into this problem:
Whatever browser you're using, try the 'other' one, that worked for me. When I used FF it completely stopped responding and shut down when I tried to upload images. IE worked fine. I had to install Java again (which I already have, so go figure) to get FF to upload but it's working now.
I had to upload Java to my FF browser and that did the trick. I hope you folks are filing support requests.