Same issue
I've used the PowerCMS php script just fine for one client. They are now moving hosts (to consolidate services) and are having me install it on GoDaddy. Everything installed just fine (no warnings/error). But when I click to "insert image" > "browse server" the KFM script doesn't work. It just loads a page that says "Please wait - loading..." - no javascript errors, no hanging processes, just a finished, loaded, essentially blank page. Something isn't working with KFM out of the box in this installation on GoDaddy. For the life of me, I can't figure out what.
EDIT - SOLUTION FOUND! **************
After browsing the forums further, I found that the solution Jason Byrnes supplied in this thread response was exactly what I needed: showpost.php?p=142797&postcount=4
************************************