File Manager and Add Product image upload issues

Using the latest Powerstore.

For several weeks I have had Powerstore running fine and the client has been entering products with no problems at all including product images.

During this time I used DataAssist and created a blog which I embeded into the admin and customer sides and all was working fine.

2 days ago I changed the HTML editor in the blogs insert/update pages in the admin from "normal" to one of the versions with "file manager" so the client could add images.

Testing it seemed fine. I was able to add a new post and embed an image into to so I left it to the client to test further.

The client informed me today that they don't see images when they upload them from their computers in the blog insert page. I tried it myself and sure enough it seemed to time out within a second of pressing upload. If a image is say 50k or smaller that second is enough time to upload it (sometimes) but a larger file size does not fully upload so the file name is saved but a 0k image is saved as well. You can view the partial image and see it via FTP.

So I was wondering if there was a known issue for this and where do I begin to solve this.

THEN...

While digging around I noticed that all of the images the client uploaded for the last 2 days when adding new products also have 0k file sizes. And of course the images are broken in the product listings. I asked the client if they noticed that the images were not working right when they were adding the products they said yes but didn't think to tell me because they figured they were doing something wrong.

SO...

I don't know where to start and am afraid that the DataAssist code may have contaminated the Powerstore stuff.

Any ideas?