Did you guys try what Nifty said and make the images smaller? Many phones and cameras take pictures that are very large.
It could all be computer related-- adware, trojans, Odd extensions installed on the browser. Try starting chrome with extensions off and try uploading an image again
I seem...
It sounds like you are not doing this correctly. You click on the upload file button and then browse for the image file. Then click on insert thumbnail or full image.