ACP --> vBa Gallery --> Modify Settings --> {browse down about 2/3rds of the way down to the "Show Image Options" settings} Show Link Code / Show <img> Code Tag / Show BBimage Code Tag
Yep, that'd be a problem. When you did the RC3 upgrade that gave you a fresh copy of the source code but the templates will still need to be reverted to get the updated options.
I like it so that the members can upload a pic to the gallery and them use the provided code to place the image inline in a post. Some are not so savvy.