Lots of problems with this module from what I can see.  Personally, I think you should keep the Image module separate from the Media module.

When I upgraded my site from 4.0.3 to 4.3.3, and then uploaded the Media module to the Host > Module Definitions section, it automatically replaced all of my Image modules with Media modules on the site.

How is the Media module's Width property set?  When I added a Media module to my left panel, and then associated an image (jpg) that was 200 pixels wide, even when I set the width and height of the image inside the Media module settings, it cut the image off.

Furthermore, a lot of my Text/HTML modules overlapped the upgraded Media moduels content, viewing it through IE.  Seemed fine in Firefox, but most people don't run Firefox by default so we still have to be mainly concerned with IE.

For now, I am sticking with keeping the Image module and Media module separate.  It just makes sense to keep static image display separate from audio / video content.

I also have this problems. The Media module open a div tag without closing and i lost all my image settings! :(

I have still old image modules. I cannot replace over 200 modules. All settings was lost and i must look in the html source for picture names! One cannot install this module nevertheless simply over another! What is that?