Your IE cookie thing the developer stated was an issue with the flash upload code. This is not directly our software we make. This is only an option we include and it can be turned on or off. We do not provide support for external software. If Michael finds anything that might help you he will post.
Now in this thread I have offered to help check things out a few times but you never responded. I have installed many vbgallery installs and upgrades on the new vb 4.1 over the last month and as other users have said here no one else has seen any issue such as this. You are the only one who has reported this. I would suspect this comes down to a plugin conflict but we would definately need more info to help you.