problem inserting new images

OK, I misunderstood - I'll do an install of Joomla 1.7 later today and test it. I'll also try your suggestion in the other thread.

Make sure that you can install Joomla 1.7 normally (upload via FTP and run the installer), not through hosting's auto-installer. I already uploaded files of clean Joomla 1.7 (not from our template) on your server and as you can see the installer won't start.