There seems to be a conflict with the Links module ... more specifically the related links. If you enable related links for the content_type in question... After uploading images I receive this error message.
warning: Invalid argument supplied for foreach() in /var/www/mysite.com/sites/all/modules/links/links.inc on line 1047.

Not sure how or why they conflict but I thought Id let you know. For me I can just turn off related links for that content type... but it may get in the way for someone who needs both on the same content type.