I’m trying out a new WordPress plugin: Image Manager. So far, it looks like it can do everything I’ve wanted the WYSIWYG editor to do (resize, crop, edit, save, folders, etc.) and it does it all in WP 2.0.x. I’ll give it a run and see how it goes. Here’s a demo video Per Søderlind put together to show how it works.
About the Author: Bradley Charbonneau
I've done the big corporate thing. I've done the creative writer thing. Now I'm happily in the middle. I like to help small businesses who are interested in "working their website before their website works them." I'm also interested in creating beautiful sites with powerful WordPress themes. Google+
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I really love this plugin too. It’s quite powerful.