Index: wp-admin/css/media.dev.css
===================================================================
--- wp-admin/css/media.dev.css	(revision 21260)
+++ wp-admin/css/media.dev.css	(working copy)
@@ -193,10 +193,6 @@
 	text-align: center;
 }
 
-#media-upload a.wp-post-thumbnail {
-	margin: 0 20px;
-}
-
 #media-items a.delete {
 	display: block;
 	float: right;
Index: wp-admin/includes/media.php
===================================================================
--- wp-admin/includes/media.php	(revision 21260)
+++ wp-admin/includes/media.php	(working copy)
@@ -21,6 +21,9 @@
 		'library' => __('Media Library')
 	);
 
+	if ( isset( $_REQUEST['context'] ) && 'featured' == $_REQUEST['context'] )
+		unset( $_default_tabs['type_url'] );
+
 	return apply_filters('media_upload_tabs', $_default_tabs);
 }
 
@@ -1156,7 +1159,9 @@
 		'extra_rows' => array(),
 	);
 
-	if ( $send )
+	if ( isset( $_REQUEST['context'] ) && 'featured' == $_REQUEST['context'] )
+		$send = '';
+	elseif ( $send )
 		$send = get_submit_button( __( 'Insert into Post' ), 'button', "send[$attachment_id]", false );
 	if ( $delete && current_user_can( 'delete_post', $attachment_id ) ) {
 		if ( !EMPTY_TRASH_DAYS ) {
@@ -1184,7 +1189,8 @@
 	if ( 'image' == $type && $calling_post_id && current_theme_supports( 'post-thumbnails', get_post_type( $calling_post_id ) )
 		&& post_type_supports( get_post_type( $calling_post_id ), 'thumbnail' ) && get_post_thumbnail_id( $calling_post_id ) != $attachment_id ) {
 		$ajax_nonce = wp_create_nonce( "set_post_thumbnail-$calling_post_id" );
-		$thumbnail = "<a class='wp-post-thumbnail' id='wp-post-thumbnail-" . $attachment_id . "' href='#' onclick='WPSetAsThumbnail(\"$attachment_id\", \"$ajax_nonce\");return false;'>" . esc_html__( "Use as featured image" ) . "</a>";
+		$primary = ( isset( $_REQUEST['context'] ) && 'featured' == $_REQUEST['context'] ) ? 'button-primary' : '';
+		$thumbnail = "<input class='$primary' id='wp-post-thumbnail-$attachment_id' type='submit' onclick='WPSetAsThumbnail(\"$attachment_id\", \"$ajax_nonce\");return false;' value='" . esc_attr__( "Use as featured image" ) . "' name='wp-post-thumbnail-$attachment_id' />";
 	}
 
 	if ( ( $send || $thumbnail || $delete ) && !isset( $form_fields['buttons'] ) )
@@ -1835,7 +1841,8 @@
 
 	$type_links[] = "<li><a href='" . esc_url(add_query_arg(array('post_mime_type'=>$mime_type, 'paged'=>false))) . "'$class>" . sprintf( translate_nooped_plural( $label[2], $num_posts[$mime_type] ), "<span id='$mime_type-counter'>" . number_format_i18n( $num_posts[$mime_type] ) . '</span>') . '</a>';
 }
-echo implode(' | </li>', apply_filters( 'media_upload_mime_type_links', $type_links ) ) . '</li>';
+if ( ! isset( $_REQUEST['context'] ) || 'featured' != $_REQUEST['context'] )
+	echo implode(' | </li>', apply_filters( 'media_upload_mime_type_links', $type_links ) ) . '</li>';
 unset($type_links);
 ?>
 </ul>
Index: wp-admin/includes/post.php
===================================================================
--- wp-admin/includes/post.php	(revision 21260)
+++ wp-admin/includes/post.php	(working copy)
@@ -1147,7 +1147,9 @@
 	if ( empty( $post_id ) )
 		$post_id = $post_ID;
 
-	$upload_iframe_src = esc_url( get_upload_iframe_src('image', $post_id) );
+	$upload_iframe_src = get_upload_iframe_src( 'image', $post_id );
+	$upload_iframe_src = remove_query_arg( 'TB_iframe', $upload_iframe_src );
+	$upload_iframe_src = esc_url( add_query_arg( array( 'context' => 'featured', 'TB_iframe' => 1 ), $upload_iframe_src ) );
 	$set_thumbnail_link = '<p class="hide-if-no-js"><a title="' . esc_attr__( 'Set featured image' ) . '" href="%s" id="set-post-thumbnail" class="thickbox">%s</a></p>';
 	$content = sprintf( $set_thumbnail_link, $upload_iframe_src, esc_html__( 'Set featured image' ) );
 
Index: wp-admin/js/set-post-thumbnail.dev.js
===================================================================
--- wp-admin/js/set-post-thumbnail.dev.js	(revision 21260)
+++ wp-admin/js/set-post-thumbnail.dev.js	(working copy)
@@ -1,20 +1,22 @@
 function WPSetAsThumbnail(id, nonce){
-	var $link = jQuery('a#wp-post-thumbnail-' + id);
+	var $button = jQuery('input#wp-post-thumbnail-' + id);
 
-	$link.text( setPostThumbnailL10n.saving );
+	$button.val( setPostThumbnailL10n.saving );
 	jQuery.post(ajaxurl, {
 		action:"set-post-thumbnail", post_id: post_id, thumbnail_id: id, _ajax_nonce: nonce, cookie: encodeURIComponent(document.cookie)
 	}, function(str){
 		var win = window.dialogArguments || opener || parent || top;
-		$link.text( setPostThumbnailL10n.setThumbnail );
+		$button.val( setPostThumbnailL10n.setThumbnail );
 		if ( str == '0' ) {
 			alert( setPostThumbnailL10n.error );
 		} else {
-			jQuery('a.wp-post-thumbnail').show();
-			$link.text( setPostThumbnailL10n.done );
-			$link.fadeOut( 2000 );
+			jQuery('input.wp-post-thumbnail').show();
+			$button.val( setPostThumbnailL10n.done );
+			$button.fadeOut( 2000 );
 			win.WPSetThumbnailID(id);
 			win.WPSetThumbnailHTML(str);
+			if ( window.location.href.indexOf('featured') != -1 )
+				win.tb_remove();
 		}
 	}
 	);