When we want to upload images in a post using WordPress 2.7, it sometimes comes with a blank white screen and upload doesn’t accomplish successfully.
I tried different plugins and spend sometime with heart attacks and finally found the solution. Happy days.
My recommendation is Flexible Upload plugin to over come that drawback of 2.7 version. It works quite good however rarely gives the previous white page error and all you need to do is deactivating the plugin and activating it again. Hope it helps.
The problem appeared again and flexible upload couldn’t fix it this time. So, I guess it can be helpful to a degree but don’t stick to it for long-term. Please let me know if you have other suggestions for WordPress image upload problems.