To that end, we’ve just released an additional change on the Blogger beta site to show you thumbnails of your photos after you upload them:
We hope that this thumbnail feature will help us diagnose the remaining issues, in particular those where no error message pops up. If you still have image upload problems on the beta please report them to us so we can get them solved. Don’t forget to mention in your description whether or not you see the thumbnails!
One more thing: to get all the latest fixes make sure that you clear your browser cache.
I know it may sound cheesy for some frustrated bloggers but, happy photoblogging!