On-line editor problems

I've noticed a couple of issues with on-line editing articles (such as creating this content).

1) Increase Indent does not work for plain text. I like to format my content by indenting text, e.g.

My header

Text body

The 'Text body' should be indented with respect to the header. But selecting the text and hitting the Increase Indent button do nothing. If the line is a bulletted list it indents, but not for plain text.

Hmm. The preview text looks right. Looks like it may be a CSS issue with the WYSIWYG editor, does not appear to class="rteindent1" defined.

2) Cannot insert images in articles. When I try to upload an image using the Insert/edit image tool I get the error: This file uploader is disabled. Please check the "editor/filemanager/connectors/php/config.php" file
Can we enable that? I'd like to include screen shots in my documents.