Idealy you need to load photo's from your computer through the Manage Attachments or Insert Image buttons.
We deleted VBSEO a little while ago (because it is no longer supported and had security problems) and it appears that this may have been part of the problem. It has affected a lot of different things, most of which were fixed or sorted out prior to thew final deletion, but there are always unforeseen problems that raise their ugly heads hno matter how hard we try.
:U