Image size problems in IE7 and IE8 - WYSIWYG, img_assist, tinymce

Hello all,

I have been testing image assist with the latest WYSIWYG api (updated via cvs) and have an issue in IE.

Here it is:
I add an image aligned left with 'preview' size (which is 640x480): http://drupal.org/files/preview_selection.jpg

I add it to tinymce it and it is looking good: http://drupal.org/files/preview_looks_good_untill.jpg

UNTILL (drum roll)... I hit the 'preview' button. It then shows the image in thumbnail size and doesnt show at all in tinymce: http://drupal.org/files/preview_wrong.jpg

This whole process works perfectly in FF3.5 so I'm pretty sure its not a weird filter issue:
http://drupal.org/files/preview_right.jpg

html in IE before preview:

<P>[img_assist|nid=17|title=|desc=|link=none|align=left|width=0|height=0]lkj sldkjf lskdj flksj df;lksj df;lkj ;lskjd f</P>

Here is the html in tinymce:
html in IE after preview:
<P>[img_assist|nid=17|title=|desc=|link=none|align=left|width=0|height=0]lkj sldkjf lskdj flksj df;lksj df;lkj ;lskjd f</P>

html in FF b/f preview:

<p>[img_assist|nid=17|title=|desc=|link=none|align=left|width=640|height=396] ad sdf sdf dsf sd fdsf sdafd sad f</p>

html in FF3.5 after preview:

<p>[img_assist|nid=17|title=|desc=|link=none|align=left|width=640|height=396] ad sdf sdf dsf sd fdsf sdafd sad f</p>

you can see that the width=0|height=0 in IE... if I change this with the tinymce html editor, it will show it right in tinymce just like http://drupal.org/files/preview_looks_good_untill.jpg . If I go back into the tinymce html editor (even before I hit preview) it will show at 0's again for height and width.