They keep pending...

Of course, you need to press "upload images" button. This starts the main process. The other buttons are only used if there are problems, so you can process all images queued on the server if there are left any because of an error, for example. Or you can delete all queued images on the server if there was a problem.
It's right that these two additonal buttons aren't really necessary to work, but they should extend the possibilities of Image FUpload.
I hope I could help you =)

Closed.

Using FF3 as well. The Upload Image button is at the bottom of the page, where as the Select Images, Cancel All Uploads, Process queued images and Delete queued images buttons are at the top of the page. Any chance of having all buttons in the same place or at a minimum making a duplicate Upload Image button?

Screenshot:
http://img255.imageshack.us/my.php?image=drupal63zu2.jpg

Its not a bug that the upload button is at the bottom, it's intended! I won't move the upload button to the top because the final button which starts or saves something, is always at the bottom. If you don't like this, you could hide the fields between the buttons via CSS, but I won't do that!
Another reason is, why the final process button is at the bottom, is that all changes made to form (so changed name of author or creation time...) will also be observed and are essential for node creating.
I hope my argumentation is comprehensible.

The uploaded files are queued as temporary files in "files" table of Drupal, but only the original owner can process them to get them turned into image nodes.