We are using Moodle 2.3.1+ and the file picker does not display the folders or the image thumbnails within the file picker window using IE 8 & 9, as shown within the images below. We have tried using the file picker with many Moodle Themes but still have the same problems.
The file picker worked accordingly for us within the 2.3 beta version, which included displaying image thumbnails and folders accordingly. We then we carried out a clean installation of 2.3 (this is where the problem started) and we have recently upgraded to 2.3.1+ and still having this issue.
The folders etc display with using Firefox 13.0.1 but won't display the image thumbnails.