Picture upload diaglog not working

When editing a forum post (for the "table missing" error) I tried to upload a screen shot.  I eventually worked around it, but duringg the progress I did the following:

1. clicked the Insert/Edit Image button on the editor wysiwyg toolbar
2. on the subsequent Image Properties dialog, I
   1. clicked the Upload tab,
   2. then the Browse button,
   3. found my file and
   4. clicked Open in the windows file browser dialog box. 
   5. This populated the path to the file within the Image Properties dialog
3. Clicked Send to Server

The following error was recieved. 

I did work around this using the Browse Server button on the Image Info tab.  There is an upload link on that page that seemed to work ok.  In fact, that dialog allows is much more functional in managing files on the server, deleting, resizing, uploading, etc.