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.
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