Sorry if interfering in this thread
Something is wrong, it should work. What is the default value of the iRite field on the Update page? 
Sorry if interfering in this thread, seem to be slightly different problems, move this to a separate thread if it is appropriate.
Not sure how to see the default value, do you mean the source code on a blank field?
If this helps paste below of a working update source before sending it live, with formatted text and a resized image that all works on the live page. Followed by the same update iRite source when revisited a minute later. In one with more text some of the text went funny too but not in this example but you can see how the image bits changed.
<html>
<head>
<title></title>
</head>
<body>
<div>
<div>
<div> </div>
</div>
<div><span> Other than that, get stuck in and enjoy yourselves. </span></div>
<div><span> </span></div>
<div><span>         Pukka.</span></div>
<div> </div>
<div> <input type="image" height="278" width="200" src="/userfiles/image/9780955912818.jpg" /></div>
</div>
<div> </div>
<div> </div>
</body>
</html>
<html>
<head>
<title></title>
</head>
<body>
<div>
<div>
<div> </div>
</div>
<div><span> Other than that, get stuck in and enjoy yourselves. </span></div>
<div><span> </span></div>
<div><span>         Pukka.</span></div>
<div> </div>
<div> <input src=""/userfiles/image/9780955912818.jpg"" width=""200"" height=""278"" type="text" /></div>
</div>
<div> </div>
<div> </div>
</body>
</html>
