Greg, I have windows 7 64 bit SP1 .
Every program I have will access the pictures except publisher and chasing around for an image when I know exactly what it is and where is unusual.
This one below for instance: Accessible with the forum "add file" feature but not available with publisher.
It is of no consequence but I report this as an issue at my end regardless, if you can actually place an image in the publisher panel then its my computer (and I) but you said you can "navigate" to the pictures folder and that doesn't sound the same as importing.
Meanwhile I shall investigate some more and report once again.
BTW The problem I had with the blank publisher panel was not a result of editing the ini files (mixskin) I downloaded the beta and instead of changing all the colours again one by one, I pasted the edited mixskin I already had in documents. There
was the problem because it did not have the publisher panel data!