What my site runs on:
- Wordpress version: 3.4.2
- Host Gator Shared Server
- PHP 5.3
What happens when i click use as featured image ?
- The text "Saving..." appears and the image never gets saved as the featured image
What I tried
The problem was on 3.4.1 so i updated it to 3.4.2 ( Issue not resolved )
Changed the theme to the basic twenty ten ( Issue not resolved )
Wordpress support forums seem to sway towards the fact that its a wordpress core code issue and not an issue with the themes.