Wysiwyg embeds breaks in Firefox and IE

When editing a node with an embedded image using a non-webkit browser the image breaks and loses view mode and links.
It definitely feels like a javascript error but nothing is sticking out in Firebug Console.
When edited and saved using FF or IE, the image that previously had a link and a specific image is reduced to a plain image tag like

<img width="120" height="167" typeof="Image" title=" blablabla" src="http://domain.com?itok=Yq9TbUSs" info="%22media%22%7D" class="media-element file-embeddedfile" alt=" blablabla">

When we were really expecting it to look more like

<div class="media media-element-container media-embeddedfile"><a href="/files/b2vf000021jpg"><img height="208" width="208" class="media-element file-embeddedfile" typeof="foaf:Image" src="http://domain.com/B2_VF000021.jpg?itok=cttVcIa0" alt=""></a><div class="field field-name-field-title field-type-text field-label-hidden"><div class="field-items"><div class="field-item even">B2</div></div></div><div class="over" style="display: none;"></div></div>

Editing using a webkit browser works.

PHP 5.4.4-14+deb7u7
Drupal 7.23
Media 7.x-2.x-dev (latest)
File Entity 7.x-2.x-dev (latest)
Wysiwyg 7.x-2.2
JQuery Update 7.x-2.3+9-dev
JQuery 1.5.2
Display Suite 7.x-2.6

Hope I'm making some kind of sense here and that someone can help with this. I'd be happy to roll a patch for it if I knew where to start looking for the source of the error.

//Christopher