One more thing..
We installed a new theme to see if it worked and what we found out is the following:
- The uploader works perfectly fine on the standart default magento theme.
- once we installed the Hellopod theme, the uploader stopped working.
- We uninstalled the hellopod theme and installed the Hellosleek theme. It did not work either.
- We then uninstalled that theme again and installed the standart magento theme, and it worked perfectly fine.
Please let us know what the problem is as this feature is absolutely indispensable for our business.