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This issue has been there before with other versions and other editors http://drupal.org/node/1835826#comment-6783518
I understand the CKeditor 4 integration is brandnew and so issues can arise.
If you insert an image via the Media Browser, it first inserts the image fine. But when you save or switch to source code, you just get a "false" instead of the media tag, which should be something like
Using CKeditor 3.6.x fixed the problem for me. So it must be the brandnew CKeditor 4 JS that is causing the issue. Maybe it does not like the formatting of Media tags.