Index: wp-admin/css/colors-classic.css
===================================================================
--- wp-admin/css/colors-classic.css	(revision 8062)
+++ wp-admin/css/colors-classic.css	(working copy)
@@ -561,7 +561,7 @@
 }
 
 /* Containers */
-.wp_themeSkin table {
+.wp_themeSkin table, #wp_editbtns {
 	background: #83B4D5;
 }
 
Index: wp-admin/css/colors-fresh.css
===================================================================
--- wp-admin/css/colors-fresh.css	(revision 8062)
+++ wp-admin/css/colors-fresh.css	(working copy)
@@ -533,7 +533,7 @@
 }
 
 /* Containers */
-.wp_themeSkin table {
+.wp_themeSkin table, #wp_editbtns {
 	background: #cee1ef;
 }
 
Index: wp-admin/gears-manifest.php
===================================================================
--- wp-admin/gears-manifest.php	(revision 8062)
+++ wp-admin/gears-manifest.php	(working copy)
@@ -87,7 +87,7 @@
 ?>
 {
 "betaManifestVersion" : 1,
-"version" : "<?php echo $man_version; ?>_20080602",
+"version" : "<?php echo $man_version; ?>_20080606",
 "entries" : [
 <?php echo $defaults; ?>
 
@@ -149,6 +149,7 @@
 { "url" : "../wp-includes/js/tinymce/themes/advanced/js/link.js?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/themes/advanced/js/source_editor.js?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/themes/advanced/js/anchor.js?ver=3091" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/js/editimage.js?ver=3091" },
 
 { "url" : "../wp-includes/js/tinymce/themes/advanced/source_editor.htm?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/themes/advanced/anchor.htm?ver=3091" },
@@ -162,6 +163,7 @@
 { "url" : "../wp-includes/js/tinymce/plugins/paste/pastetext.htm?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/plugins/fullscreen/fullscreen.htm?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/plugins/inlinepopups/template.htm?ver=3091" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/editimage.html?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/wp-mce-help.php?ver=3091" },
 
 { "url" : "../wp-includes/js/tinymce/themes/advanced/skins/wp_theme/ui.css?ver=3091" },
@@ -174,6 +176,7 @@
 { "url" : "../wp-includes/js/tinymce/plugins/media/css/media.css?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/plugins/paste/css/pasteword.css?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/plugins/paste/css/blank.css?ver=3091" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css?ver=3091" },
 { "url" : "../wp-includes/js/tinymce/wordpress.css?ver=3091" },
 
 { "url" : "../wp-includes/js/tinymce/themes/advanced/img/icons.gif" },
@@ -208,5 +211,7 @@
 { "url" : "../wp-includes/js/tinymce/plugins/wordpress/img/page.gif" },
 { "url" : "../wp-includes/js/tinymce/plugins/wordpress/img/page_bug.gif" },
 { "url" : "../wp-includes/js/tinymce/plugins/wordpress/img/toolbars.gif" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/img/image.png" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/img/delete.png" },
 { "url" : "../wp-includes/js/tinymce/plugins/wordpress/img/help.gif" }
 ]}
Index: wp-admin/wp-admin.css
===================================================================
--- wp-admin/wp-admin.css	(revision 8062)
+++ wp-admin/wp-admin.css	(working copy)
@@ -1587,3 +1587,26 @@
 	margin: 0;
 	padding: 0 7px;
 }
+
+#wp_editbtns {
+	padding: 2px;
+	position: absolute;
+	display: none;
+	z-index: 999998;
+}
+
+#wp_editimgbtn, #wp_delimgbtn {
+	margin: 2px;
+	padding: 2px;
+	border: 1px solid #999;
+	background-color: #eee;
+	-moz-border-radius: 3px;
+	-khtml-border-radius: 3px;
+	-webkit-border-radius: 3px;
+	border-radius: 3px;
+}
+
+#wp_editimgbtn:hover, #wp_delimgbtn:hover {
+	border-color: #555;
+	background-color: #ccc;
+}
Index: wp-includes/js/tinymce/tiny_mce_config.php
===================================================================
--- wp-includes/js/tinymce/tiny_mce_config.php	(revision 8062)
+++ wp-includes/js/tinymce/tiny_mce_config.php	(working copy)
@@ -70,7 +70,7 @@
 */
 $mce_spellchecker_languages = apply_filters('mce_spellchecker_languages', '+English=en,Danish=da,Dutch=nl,Finnish=fi,French=fr,German=de,Italian=it,Polish=pl,Portuguese=pt,Spanish=es,Swedish=sv');
 
-$plugins = array( 'safari', 'inlinepopups', 'autosave', 'spellchecker', 'paste', 'wordpress', 'media', 'fullscreen' );
+$plugins = array( 'safari', 'inlinepopups', 'autosave', 'spellchecker', 'paste', 'wordpress', 'media', 'fullscreen', 'wpeditimage' );
 
 /* 
 The following filter takes an associative array of external plugins for TinyMCE in the form 'plugin_name' => 'url'.
@@ -122,7 +122,7 @@
 }
 $plugins = implode($plugins, ',');
 
-$mce_buttons = apply_filters('mce_buttons', array('bold', 'italic', 'strikethrough', '|', 'bullist', 'numlist', 'blockquote', '|', 'justifyleft', 'justifycenter', 'justifyright', '|', 'link', 'unlink', 'image', 'wp_more', '|', 'spellchecker', 'fullscreen', 'wp_adv' ));
+$mce_buttons = apply_filters('mce_buttons', array('bold', 'italic', 'strikethrough', '|', 'bullist', 'numlist', 'blockquote', '|', 'justifyleft', 'justifycenter', 'justifyright', '|', 'link', 'unlink', 'wp_more', '|', 'spellchecker', 'fullscreen', 'wp_adv' ));
 $mce_buttons = implode($mce_buttons, ',');
 
 $mce_buttons_2 = apply_filters('mce_buttons_2', array('formatselect', 'underline', 'justifyfull', 'forecolor', '|', 'pastetext', 'pasteword', 'removeformat', '|', 'media', 'charmap', '|', 'outdent', 'indent', '|', 'undo', 'redo', 'wp_help' ));
@@ -226,7 +226,7 @@
 // Setup cache info
 if ( $disk_cache ) {
 
-	$cacheKey = apply_filters('tiny_mce_version', '20080602');
+	$cacheKey = apply_filters('tiny_mce_version', '20080606');
 
 	foreach ( $initArray as $v )
 		$cacheKey .= $v;
Index: wp-includes/script-loader.php
===================================================================
--- wp-includes/script-loader.php	(revision 8062)
+++ wp-includes/script-loader.php	(working copy)
@@ -35,7 +35,7 @@
 	$scripts->add( 'editor_functions', '/wp-admin/js/editor.js', false, '20080325' );
 
 	// Modify this version when tinyMCE plugins are changed.
-	$mce_version = apply_filters('tiny_mce_version', '20080602');
+	$mce_version = apply_filters('tiny_mce_version', '20080606');
 	$scripts->add( 'tiny_mce', '/wp-includes/js/tinymce/tiny_mce_config.php', array('editor_functions'), $mce_version );
 
 	$scripts->add( 'prototype', '/wp-includes/js/prototype.js', false, '1.6');