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I've tried to find a solution on this forum to the problem. This issue appeared all of a sudden about a month ago and we suspected it was triggered by us sending more newsletters than usual, so we deleted some old newsletters to free up some space, to no improvement.
To be short, whenever using the WYSIWYG editor to upload an image (of any size or format), it doesn't work (there's a red X instead of the image and nothing gets uploaded). If I paste a link to an image uploaded somewhere else however, it works.
Hope we can get to the bottom of this.
Can you please ensure that your /uploads/ folder is chmod to 0777.