OLW won't publish "pictures from your computer"

[toobob]

starting this morning, olw won't publish posts to google blogger if they contain "pictures from your computer." post attempt gives:
"The remote server returned an error: (400) Bad Request"
it will only post "pictures from the web"
This is a major problem. Someone please fix this.

[beaninlove]

I'm getting the same error message when trying to publish! Help!

[ronmartblog]

Holy crap - seriously? Is this going to be fixed soon?