Index: wp-includes/functions.php
===================================================================
--- wp-includes/functions.php	(revision 8367)
+++ wp-includes/functions.php	(working copy)
@@ -1489,9 +1489,9 @@
 
 	// $dir is absolute, $path is (maybe) relative to ABSPATH
 	$dir = path_join( ABSPATH, $dir );
-
+	
 	if ( !$url = get_option( 'upload_url_path' ) ) {
-		if ( empty($upload_path) )
+		if ( empty($upload_path) or ( $upload_path == $dir ) )
 			$url = WP_CONTENT_URL . '/uploads';
 		else
 			$url = trailingslashit( $siteurl ) . $upload_path;
@@ -1523,8 +1523,9 @@
 		$message = sprintf( __( 'Unable to create directory %s. Is its parent directory writable by the server?' ), $dir );
 		return array( 'error' => $message );
 	}
+	
+	$uploads = array( 'path' => $dir, 'url' => $url, 'subdir' => $subdir, 'basedir' => $bdir, 'baseurl' => $burl, 'error' => false );
 
-	$uploads = array( 'path' => $dir, 'url' => $url, 'subdir' => $subdir, 'basedir' => $bdir, 'baseurl' => $burl, 'error' => false );
 	return apply_filters( 'upload_dir', $uploads );
 }
 
Index: wp-admin/press-this.php
===================================================================
--- wp-admin/press-this.php	(revision 8367)
+++ wp-admin/press-this.php	(working copy)
@@ -34,13 +34,14 @@
 			$content = $_REQUEST['content'];
 
 			foreach( (array) $_REQUEST['photo_src'] as $key => $image) {
-				// escape quote for matching
-				$quoted = preg_quote2($image);
-
+				
 				// see if files exist in content - we don't want to upload non-used selected files.
-				if( strpos($_REQUEST['content'], $quoted) !== false ) {
+				if( strpos($_REQUEST['content'], $image) !== false ) {
 					$upload = media_sideload_image($image, $post_ID, $_REQUEST['photo_description'][$key]);
+					 
 					// Replace the POSTED content <img> with correct uploaded ones.
+					// escape quote for matching
+					$quoted = preg_quote2($image);
 					if( !is_wp_error($upload) ) $content = preg_replace('/<img ([^>]*)src=(\"|\')'.$quoted.'(\2)([^>\/]*)\/*>/is', $upload, $content);
 				}
 			}