I posted on this yesterday and I can confirm that this is happening on
PC and Mac.

When we edit a page that is in a subfolder and try and place an image
from the local hard drive on the page it is NOT being uploaded to the
remote site.

The source code shows a link back to the local computer like this:


(Of course on the PC it links to the C: drive)

I have read the tech note about extension types and this isn't relevant
here - we are talking about straight html pages.

Surely this is something others have encountered? Is this a known bug?
We are desperate here.

When you are at the top level of the site this isn't an issue, only
when you edit a page in a sub folder of the site.