From top to bottom in the dialog box, there is window for the url of the file to be inserted, an "alternative text" window, a large blank area with the label "file browser" above it, a "preview" window, and the upload browser(complete).
The files definitely upload, I can browse through the site to the files.php/1/images folder and find them there, so the insert image dialog is functioning insofar as you can upload through it, and - once you deduce the url for the uploaded image - insert it, but for some reason the server-side file browser is absent, even though there's clearly a space for it.
Please, can anyone suggest a remedy?