I wonder why is this bug marked as resolved/fixed? I'm trialing Confluence 5.3 using FF 23 and I'm running into the same issue with pasting images. I get broken images in Preview as well as after I save. I have better luck with Chrome 29, but not 100% of the time.
At any rate, the recommended workaround should be sufficient. I'm very disappointed that paste doesn't work though - it's an incredible A+ feature when it works.
The bug is fixed in Confluence 5.2.4 and 5.3 (you can see this from the fix version field). However these Confluence versions are not released yet. Confluence 5.2.4 is scheduled to be released towards the end of this September.
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