eventsyoudesign. Sorry about the time frame in answering - I missed this one. In fact, I haven't added pictures lately so had not noticed the changes they have made.
I checked out the improved photo capsule feature after reading your question and I notice it takes longer to load the picture once I have uploaded it, but it did work for me.
I noticed you have checked out the forum thread for this issues - which is where I had hoped to find some answers for you. I hope you can work it out. I use Safari and so far, don't have any issues, but then, they might have fixed the problem by now. :)