Prior to the introduction of the new media upload modal box for inserting and uploading media into posts, the tool itself will not display any of the images that have just been uploaded, nor will it display anything that was already in the media library before.
In the Chrome console I'm getting the following error;
Uncaught SyntaxError: Unexpected token < admin-ajax.php:1
I had a look at this WordPress support topic and the only thing I could find relevant in that was the Bulletproof security point, but I checked for the .htaccess file.
EDIT : Found this in the error logs of the site; [Thu Feb 14 22:28:28 2013] [error] [client ] PHP Notice: Undefined variable: R04CB58866688F2FE57771583392B6A18 in /usr/local/pem/vhosts/136505/webspace/siteapps/21578/htdocs/wp-includes/js/tinymce/themes/advanced/skins/o2k7/img/8cd.php(3) : runtime-created function(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code on line 1, referer: http://playstationer.net/wp-admin/post-new.php