I have been testing this module, and found that images i add (only option is for a URL) do not show up in preview or a submitted post.

This is for both just an image tag and if the image is a link. Interesting thing is, if you re-edit the post the image is there. In the post (and preview) there is no html for the image in the node body (from view page source and firebug).

Anyone able to replicate this problem/issue?

[this is without the Niceditor in the module folder]

Any chance of IMCE (or similar) support for this for image uploads?