Since 3 months WYSIWYG image upload is available and is on its way to establish a new way and simplicitiy in uploading and placing images into the WYSIWYG editors (screencast). I thint the module got pretty stable and has some interesting features build in.

Highlights are:
- User Interface: Easy and fast user interface for image uploading
- WYSIWYG cross edtitor compatible: Based on the WYSIWYG Module and API
- Details: You can set image details like Title, Text-Floating, and Styles(Border, Spacing) and Preset (ImageCache)
- Image Browser: You can browser and add images you already used before
- Sizes: It has support for imagecache and you can set a custom image size by using drag&drop
You can see it in action in thise screencast : http://www.youtube.com/watch?v=LEKpvI1G8qE or look for some user reviews here, which kind of reflects the usage statistics, which are constantly growing.
The dialog is completely based on the WYSIWYG API and therefor support every editor supported by the API, yet i have tested CKeditor, FCKeditor and TinyMCE.
I would love to here some critics or feedback of you guys.

Comments
demo looks good
demo looks interesting.. likely try it out in next few days.
possible config option might be to disable resize - i like idea of admin setting a few icache presets for users to pick from.. but this is lost if they can just resize after inserting.
Peter Lindstrom
LiquidCMS - Content Solution Experts
30 modules and still can't have an all around editor..?
First my congratulations for all the creative work and I'm sure I'll use it, as the beter options don't seem to work yet:
Just uploading, including this one; now maybe 30 modules just to get a reasonable editor on my site that can upload and integrate pics, vids, audio, diagrams, graphics, 3rd party items a.s.o. in articles. Then it must also be able to easily make columns (not that I really need them for text as I already have a left and right column on my site with other info), so that I can use the blank space that otherwise always is useless after uploading a pic.
Guess what? I think those 30 modules together are not even going to do that job yet & I already have severe conflicts of these modules trying (not more than that) working together & all those modules slowing my site down and can cause conflicts with my webhoster + I hope most developers of those modules realize that it might be better to integrate their modules with other editing modules; so that those 30 modules can be transformed to 3-5 big modules.
Probably it's waiting for the new project/module "Media", "Media_Mover", "Emfield", "Insert", "Filefield", jQuery, plug ins, libraries, many other xxxfield, xxxvideoxxx, xxxaudioxxx, a.s.o., a.s.o., to be able to integrate all this in some editor like WYSIWYG with CKEditor or whatever..? (Ofcourse I won't use the "media" module for Drupal 7 until in 2011/2012 when all neccesary other modules I need will be there) Strange that in 2010 Drupal doesn't seem to be able to have a good all around editor.
Suggestions what would be the best approach, are welcome!
Unrealistic
.. pics, vids, audio, diagrams, graphics, 3rd party items ..
There is no editor capable of this.
Well to get this dream done, you pretty much need a lot of knowledge. The conflicts you are talking about are very typical for drupal, especially for the Javascript supported modules. JS code is code is less controlled, it seems like there are rather few people looking at it and it seems like the devs are not really experienced in that field.
So conflicts are something you will face and which will probably cost you a lot time and nerves, this is kind of disired.
I cannot see a current framework expect media being capable of covering all those fields + being that well written. But it seems like the media devs a still very concentrated on the Drupal 7 part, so there is rather few development in the D6 branch. I think this is reasonable, as they first wantt to get one branch stable and then backport it, instead of working on both at the same time.
My advice would be, cut the list down to something more general, get this stable. Complete your drupal with other modules, get this stable and then try to get things like "diagrams" working. Maybe in that time media will have some new milestones :)
This looks by far the best
This looks by far the best and most user friendly WYSIWYG image upload.
however for my site taxonomy/tags for images is a must.
Any plans to implement taxonomy/tags features to it?
New release
In the new 6.2.x release which is currently in beta-phase we actually can support unlimitted settings / meta data for images. While images are no nodes yet, the whole backend is converted to use an image as an entity with an identifier. Right now i have chosen to not use nodes, as this would be mean a lot of weight for every inline-image.
I think i will make an API to react upon the creation of an image entity so you can hook and create a corresponding node. This way, you will be able to add tags / taxonomy or whatever you need and which is connected to the node-api. But this will be then included in a submodule, so other people can still use the lightweight approach.
Help to implement some stuff so we can do this in the near future .. right now iam quiet on my own.
Image nodes
I understand that inline images should NOT be made nodes, but why don't you show node images in the browser window alongside uploaded images?
No Limitation
There is no limitation doing that. All WUI needs is a fid, so it works on the file-API of drupal core. It therefor can use images of the image moduel, imagefield, filefield or whatever .. its compatible with it.
With the new 2.x you can easilly add what ever you like. We have a upcoming views integration which will ease up those things a lot, so you can combine those. In the end, the browser is there to give back a fid - anything else is done by WUI. And thats what we can use views for with all kinds of entities providing files ( file api )
Drupal 7
Hi Eugen Maye,
This module looks to be far superior to IMCE and the bridge. Can I ask if you plan to port this to D7 and what your schedule for this looks like? I'm not much of a coder, but if you need a tester I am in.
D7 status
I was working on a port yesterday on the D7 codesprint in Hannover. In the end i ended up making a new release of D6 with a bunch of bugfixes and new features. I going to make the D6 version more robust when starting with the D6 port.
During that i was looking into the code. A lot of things will be done using dbtng to have the new PDO interface also in D6. There will be some changes according to the nodeapi stuff, the perm stuff, the form_api handling and most probably the caching done for saving the data during editing. This will take quiet a while and i wont be able to finish this on the last day of the sprint today.
That said, i dont think you will see the port done by me in the near future, because iam not using D7 for at least 8-10 months from the release on. So the only way to let things happen here is some kind of chippin i guess - or waiting or even better, helping :)
CSS - a minor bug seems to be corrected on 2.7
Hi Eugen, I've been trying out this method on a couple of sites and think that it's a very good solution. I particularly like the views integration and will be checking that out next.
During testing I did uncover a bug with the stylesheet integration. When adding 2 images to a single body field, each with a different stylesheet defined. They both render with the same stylesheet! The second (or last) one defined in the rich text area. It seems that this has been corrected on your latest version 2.7 but wasn't mentioned on the update bug fixes.
Nice one :-)
Update on Status of D7 port
Hi Eugen, I've been exploring various options and your description of this module seems to fit the bill nicely. Has the D7 port been deprecated in favor of the Media project, which is still in development? Or are you still working on this?
Drupal's WYSIWYG implementations all fail in the area of supporting media uploads in a seamless manner within the interface. IMCE came close, but now we're told that there will be a better way. I installed the Insert module but the usage is far from intuitive, and requires too many steps to install it for my typical users.
Sorry. I'm venting. I was just checking to see how things were going with your module, because I'd really like to play with it. I've not had enough experience to hack it yet, but maybe next year.
D7 port
there is a chipin open for the D7 port, as it requires quiet some work.
Media is a pretty cool approach and it is yet to be decided to port the WUI backend on media, it would at least make a lot of sense.
Still, the UI and the inline-placement and the "ease of use" is not what media is currently concentrating or focusing on. It is a very powerful backend, with a lot of good API arround it. I think the WYSIWYG integrations are the key to the user and thats were i still see the use of WUI in D7.
so in plain, media backend + WUI as fronend is something i currently have in mind. This will of course mean a complete rewrite for D7 and D6 ( as i will not maintain to different version ), based on OOP completely for D6 / D7 wrappers.
Help bringing the D7 port on the stage by chiping in ( check the projekt page)
A very good plugin, thank
A very good plugin, thank you!