If the text of a node contains multiple [inline] tags, garbage is displayed.
the problem was caused by wrong regular expression that tests the presence of inline tags inside text.
Here is the correct code:

    if (preg_match_all("/\[(inline|file|attachment):(\d+)=?(.[^\]]*)\]/i", $node->body, $match)) {

Please download the latest (12-24-2004) version that contains the fix.

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