Imagefield 1.2-rc1 stops uploading pictures once Organic Groups is installed! ...and why is this Drigg's fault?

so here's a nasty problem and the fault is Drigg's fault (I'll explain why).

Problem: I have live site ruuning with Drupal 5.7, Drigg 1.33, Extra Voting Forms, Jquery Update, CCK Imagefield 1.2-rc1 and now I installed Organic Groups (OG).

Even though as we know it already Imagefield and Drigg are not really a match made in heaven, I have this combination on my site and it worked (in instructions I told my users to create scoops first, then edit them and upload image in this second step). Then I installed Organic Groups (OG) to allow members to form groups (like on YahooGroups or GoogleGroups or FacebookGroups), and the Imagefield stopped uploading pictures -- I mean it does not even display the uploaded picture in the submission form -- just an empty space!

So initially I thought that this has nothing to do with Drigg and it must be a conflict between Imagefield 1.2-rc1 and OG 7.3. So I did a clean install of Drupal 5.8 and enabled exactly the same copies of both Imagefield and OG -- and they worked perfectly together. Then I enabled the Drigg modules (including User Karma, but NOT Extra Voting Forms) and there we go: the same problem started on my brand new test site: the imagefield images stopped being uploaded and is not being displayed even in the submission form!!! This leads me to conclude that the problem is in the Drigg modules.

Then, on my live site I disabled the OG, and all is back to normal. Enable OG: the problem is there again.

Then I tested to see if this has anything to do with JQuery update. I replaced the core with JQuery 1.0 (which contains JQuery 1.1.2), then JQuery 2.1-rc1 (which supports JQuery 1.2.6), and then the JQuery from the Extra voting forms (even while Extra Voting Forms is not enabled) -- All the same.... the problem persists. Which means that this might not be a JQuery problem at all. And is probably something to do with Drigg js or any other aspect of Drigg.

Additionally: if its of any help, the log etries are filled with "Page not found" errors in files/images/example_name.jpg

Why am I marking this as critical? Because both OG and CCK Imagefield are very important modules for Drupal and are widely used by Drupal community. Many of the Drigg users that I've spoken to often use OG on their sites.