Index: wp-includes/js/swfupload/handlers.js
===================================================================
--- wp-includes/js/swfupload/handlers.js	(revision 7253)
+++ wp-includes/js/swfupload/handlers.js	(working copy)
@@ -55,20 +55,11 @@
 	// Bind AJAX to the new Delete button
 	jQuery('#media-item-' + fileObj.id + ' a.delete').bind('click',function(){
 		// Tell the server to delete it. TODO: handle exceptions
-		jQuery.ajax({url:'admin-ajax.php',type:'post',data:{
+		jQuery.ajax({url:'admin-ajax.php',type:'post',success:deleteSuccess,error:deleteError,id:fileObj.id,data:{
 			id : this.id.replace(/[^0-9]/g,''),
 			action : 'delete-post',
 			_ajax_nonce : this.href.replace(/^.*wpnonce=/,'')}
 			});
-
-		// Decrement the counters.
-		if ( type = jQuery('#type-of-' + this.id.replace(/[^0-9]/g,'')).val() )
-			jQuery('#' + type + '-counter').text(jQuery('#' + type + '-counter').text()-1);
-		if ( jQuery(this).parents('.media-item').eq(0).hasClass('child-of-'+post_id) )
-			jQuery('#attachments-count').text(jQuery('#attachments-count').text()-1);
-
-		// Vanish it.
-		jQuery(this).parents(".media-item").eq(0).slideToggle(300,function(){jQuery(this).remove();if(jQuery('.media-item').length==0)jQuery('.insert-gallery').hide();updateMediaForm();});
 		return false;
 	});
 
@@ -79,6 +70,45 @@
 		.parent().eq(0).children('.toggle').toggle();
 }
 
+function itemAjaxError(id, html) {
+	var error = jQuery('#media-item-error' + id);
+
+	error.html('<div class="file-error"><button type="button" id="dismiss-'+id+'" class="button dismiss">'+swfuploadL10n.dismiss+'</button>'+html+'</div>');
+	jQuery('#dismiss-'+id).click(function(){jQuery(this).parents('.file-error').slideUp(200, function(){jQuery(this).empty();})});
+}
+
+function deleteSuccess(data, textStatus) {
+	if ( data == '-1' )
+		return itemAjaxError(this.id, 'You do not have permission. Has your session expired?');
+	if ( data == '0' )
+		return itemAjaxError(this.id, 'Could not be deleted. Has it been deleted already?');
+
+	var item = jQuery('#media-item-' + this.id);
+
+	// Decrement the counters.
+	if ( type = jQuery('#type-of-' + this.id).val() )
+		jQuery('#' + type + '-counter').text(jQuery('#' + type + '-counter').text()-1);
+	if ( item.hasClass('child-of-'+post_id) )
+		jQuery('#attachments-count').text(jQuery('#attachments-count').text()-1);
+
+	if ( jQuery('.type-form #media-items>*').length == 1 && jQuery('#media-items .hidden').length > 0 ) {
+		jQuery('.toggle').toggle();
+		jQuery('.slidetoggle').slideUp(200).siblings().removeClass('hidden');
+	}
+
+	jQuery('#media-item-' + this.id + ' .filename:empty').remove();
+	jQuery('#media-item-' + this.id + ' .filename').append(' <span class="file-error">'+swfuploadL10n.deleted+'</span>').siblings('a.toggle').remove();
+	jQuery('#media-item-' + this.id + ' .describe').slideUp(500, function(){jQuery(this).parents('.media-item').slideUp(1500,function(){jQuery(this).remove();updateMediaForm();})}).end.remove();
+
+	return;
+	// Vanish it.
+	item.slideToggle(300,function(){jQuery(this).remove();if(jQuery('.media-item').length==0)jQuery('.insert-gallery').hide();updateMediaForm();});
+}
+
+function deleteError(X, textStatus, errorThrown) {
+	// TODO
+}
+
 function updateMediaForm() {
 	// Just one file, no need for collapsible part
 	if ( jQuery('.type-form #media-items>*').length == 1 ) {
@@ -130,8 +160,8 @@
 
 // file-specific message
 function wpFileError(fileObj, message) {
-	jQuery('#media-item-' + fileObj.id + ' .filename').after('<div class="file-error"><button type="button" class="button dismiss">'+swfuploadL10n.dismiss+'</button>'+message+'</div>').siblings('.progress').remove();
-	jQuery('.dismiss').click(function(){jQuery(this).parents('.media-item').slideUp(200, function(){jQuery(this).remove();})});
+	jQuery('#media-item-' + fileObj.id + ' .filename').after('<div class="file-error"><button type="button" id="dismiss-' + fileObj.id + '" class="button dismiss">'+swfuploadL10n.dismiss+'</button>'+message+'</div>').siblings('.toggle').remove();
+	jQuery('#dismiss-' + fileObj.id).click(function(){jQuery(this).parents('.media-item').slideUp(200, function(){jQuery(this).remove();})});
 }
 
 function fileQueueError(fileObj, error_code, message)  {
Index: wp-includes/script-loader.php
===================================================================
--- wp-includes/script-loader.php	(revision 7253)
+++ wp-includes/script-loader.php	(working copy)
@@ -84,7 +84,7 @@
 		$this->add( 'swfupload', '/wp-includes/js/swfupload/swfupload.js', false, '2.0.2');
 		$this->add( 'swfupload-degrade', '/wp-includes/js/swfupload/plugins/swfupload.graceful_degradation.js', array('swfupload'), '2.0.2');
 		$this->add( 'swfupload-queue', '/wp-includes/js/swfupload/plugins/swfupload.queue.js', array('swfupload'), '2.0.2');
-		$this->add( 'swfupload-handlers', '/wp-includes/js/swfupload/handlers.js', array('swfupload'), '2.0.2-20080228');
+		$this->add( 'swfupload-handlers', '/wp-includes/js/swfupload/handlers.js', array('swfupload'), '2.0.2-20080301');
 		// these error messages came from the sample swfupload js, they might need changing.
 		$this->localize( 'swfupload-handlers', 'swfuploadL10n', array(
 				'queue_limit_exceeded' => __('You have attempted to queue too many files.'),
@@ -102,6 +102,7 @@
 				'upload_stopped' => __('Upload stopped.'),
 				'dismiss' => __('Dismiss'),
 				'crunching' => __('Crunching&hellip;'),
+				'deleted' => __('Deleted'),
 		) );
 
 		$this->add( 'jquery-ui-tabs', '/wp-includes/js/jquery/ui.tabs.js', array('jquery'), '3' );