Image preview isn't working while using private file upload/download

I've upgraded from an older Image 5.x-1.x-dev to 5.x-1.9 and have this exact same issue too. I'm using Drupal 5.9.

Originally I also had the problem of the same error for all my existing images too, after the upgrade. But I manually updated the files.filepath in my db to be the full absolute paths instead of the relative 'images/...' that they were, and that fixed that part.

As for this, after submitting for preview, you see the boxes for the image and the thumbnail, and it has the correct sizes, but then it reverts to the ALT text. If you try to view the image that it points to (e.g. http://domain.com/system/files/images/temp/imagename.jpg), it comes up "Page not found."

Looking in the private file folder, the preview image and its thumbnail are correctly in the /(path)/files/images/temp/ folder.

Fortunately, once the image is fully submitted, it shows up normally at least.

It seems like it's not setting up the correct 'files' permissions, or wherever that's suppose to be for temp files to be viewed.

I also seem to be having some other issues, like it's not letting me choose what gallery to put the image in, or other category selections.. but I need to look into that more still.

Searching for a solution to this, I found the following related issues:

#171211: Previews don't work with private file transfers

#215792: Preview won´t show up when filesystem is set to private

Unfortunately neither solve it, but #171211 at least seems to offer some suggestions for someone that could make use of it.

Uploading images is a significant feature of a site I'm using Drupal for, and hopefully this will be addressed soon.

Duplicate of http://drupal.org/node/215792
As to your other problem, set the image gallery vocabulary to allow image. Admin -> categories -> Image galleries: edit -> [x] image. Ditto for other vocabularies, if you wish to assign images to their terms.