Having AHAH problem

Hi there.

I'm currently working on a project where people can upload an image, supply a tagline, and I create the image with the tagline and add it to a gallery. That all works great. However, the client decided (rightly) that there needs to be a preview step where people can see if the tagline shows up on the photo and choose to move the tagline location. I've made the create form have some AHAH type stuff so that they upload the photo, then I add the branding related sidebar and add that photo back into the form so they can see it.

This works great in Firefox and Chrome, but in IE when I try to insert the image into the form, a warning bar pops up saying "To help protect your security, Internet Explorer blocked this site from downloading files to your computer." If I click the bar and say download, it just downloads a file, the image never gets displayed on the page.

Does anyone have any ideas?

Thanks,
Tracy