Drupal Association members fund grants that make connections all over the world.
Seems we're running into the same IEF bug as #1621702: File upload doesn't happen on inline entity form submit.
Also see http://drupal.org/project/autoupload
Now I'm having trouble reproducing this...
Going to call this fixed for now.
Automatically closed -- issue fixed for 2 weeks with no activity.
Drupal is a registered trademark of Dries Buytaert.