Image uploading appears to still be problematic. No update on Blogger Status as of 3/23 8:00 PST.
If you'll look at my previous post Image Upload Again, at the comment from CD, she's actually had personal email from Blogger Support asking for details about her problem. I don't know why Blogger Status isn't updated to indicate that they are actually looking into the problem.
Again, if you are experiencing problems, maybe you should Report Your Problems?? The squeaky hinge gets the oil.