Cannot manage Image type "You must upload an image."

You closed http://drupal.org/node/330488 which described this problem with 1.x that is still present in 2.x

Basically if you set Gallery to manage images of image type Image rather than Gallery Image, you cannot use Manage Images (e.g. /node/50/edit/images?destination=node/50) to save changes to the reordered images, or set a default image. You get the Drupal message "You must upload an image." when hitting Submit.

This is a standard D6.13 using Garland. This should be simple to duplicate.

Also tested on -dev release.

-- glen