I'm one of the folks that is having problems at tower of babel MU. I use Live Writer to post, but also created a post with the WordPress editor called test and had the same kinds of problems.
My blog URL is: http://bonnee.towerofbabel.com/
Here's the timeling and events...
9/10/2008 All pictures visible, videos showing preview screen like it is embedded but only linked. Changed theme from 'Edublogs Default' to 'MistyLook' by Sadish. Changed header photo.
Emailed malcs_64 and let him know videos were not embedded. While he was trying to fix these problems the Anarchy player crashed the whole MU twice as he already mentioned. Somehow the images and videos on my blog no longer showed at all. I continued to post utilizing Live Writer to both my blog and http://en.towerofbabel.com. malcs_64 rebuilt my blog several times.
malcs_64 emailed me and let me know about the problems. Thought I'd try a few things to see if I could help somehow.
10/1/2008 Changed to the theme called 'Copyblogger'. Reconfigured my Live Writer program for that theme, then posted a blog with a video. The video didn't show up... so it seems my theme is not the problem. At least not fully....
Activated Embedify thinking it might have something to do with a picture/video plugin. Uploaded a blog with a video. Embedify added visible code to the page and did not display the video... so I deactivated it.
Activated wordTube it seems to be a plugin for displaying videos on the side bar. Videos didn't show, not what I wanted. Deactivated it.
Looked in the Media Library none of the videos or images are visible. The files have uploaded but no image shows.
Tried uploading a photo using Add media: Flash uploader in the write post section. The file uploaded, twice, but no image shows.
With all of this strangeness it makes me wonder if it's possible something in my account is corrupt and not allowing images? If this is the case rebuilding the page wouldn't change anything.
10/7/2008 All of the pictures and videos in my blog had broken links so I deleted them all from manage media. I did this thinking one of them might be corrupt and causing a problem... nope.
Then from WordPress editor I created a new post called test with pictures and a video. http://bonnee.towerofbabel.com/2008/10/04/test/
I uploaded the photos using the flash uploader and the browser uploader. Both seemed to upload just fine... but you can't view either photo in either the media manager or the blog post.
I aligned the first photo left, the second photo right, neither aligned properly.
The URL linked photo is only a URL.
I used the embed youtube window, copied and pasted the embed code from a video on youtube, clicked ok. The video preview showed within the editor but when published it didn't embed or link.
When I clicked save, to save the draft, it took me to another page and all my changes disappeared. I had to input everything again.
I couldn't save as a draft, only publish it.
Perhaps there are compatibility problems with the editor and IE 7.0 browser with XP service pack 3 operating system. Since the posts don't show up using Live Writer either perhaps there is a glitch with the theme or within the codingg.
Hope this helps shed some light. I appreciate any help you can give.