Ok, so I messed around with it a little and it looks like the problem is my impatience.

 

Does the Image Gallery window load slow pretty often?  For me it is really slow.  Often after clicking the Insert Image icon, it can take a good 30 seconds before it populates the left pane with the image names and folders.  The problem is if I navigate to another folder, then use the Up 1 Level button to go back, it takes a long time to go back, giving the impression that the window is frozen.

 

So it is working correctly, but is there a way to speed it up?  Maybe if it doesn't have to load the little "gif" and "jpg" icons the left of the image names?  Because there can be a couple hundered images in some cases.

 

Thanks,
Nathan