In the latest version of DNN running fck editor I insert a pic and it shows up in the editor... when I click update It posts back but loads the editor in the window the way it was before... what is going on here?  How can I make this work?

To be able to test in a similar scenario and reproduce this behavior, I must know more about your configuration. DNN version, modules installed on that page, engines installed (Pageblaster, blowery, etc), enabled features (Whitespace remover, cache, viewstate), etc

This site uses the same version and here goes an image:

problem found... state was setup to be stored in memory... not page. changed to page problem went away.