When I try to add an image to Booktype it does not save it to the images area. It was working before but now will not register the change. I dont really have a good image of it to show you. But when I press upload it just doesnt appear in the list of images.
are you trying to upload images from the "Images and Files" tab in the editing interface or from "Insert image" dialog you get when you are editing chapter and click on the image toolbar?
It is hard to say (could be so many different things) but it might be because PIL can not recognize your image format or something similar.