This post is mainly for use by WordPress support staff to understand why the recent media uploader changes have caused so much trouble for me.
My PC is a media centre PC. It sits in our lounge and we use it to play DVD’s, music, web browsing, emails and of course blogging. 
This is a picture of our PC before it was upgraded to Vista64 about four years ago but the machine itself and the TV remain unchanged.
The machines current spec is:
Intel Core2duo E7400 2.8Ghz mounted on an Asus motherboard
8Gb memory
64 bit Windows Vista home premium operating system (SP2)
3 terrabytes disk storage
Custom Coolermaster ATCS case with an in-car 40w CD head unit plumbed into an Asus sound card and noise filters to Bowers&Wilkins speakers. The case also has 14 fans many of which are controlled by fan controllers mounted in the redundant drive bays. The CPU is also fitted with an oil cooler. These are required to cool it as it is sat close to a wood burning stove in our small lounge.
Instead of a monitor the PC is connected to a Toshiba Regza 42″ LCD TV via HDMI cable and with screen resolution of 1280 x 720, 60Hz, 32bit colour, powered by an Asus GeForce GTS 250 graphics card.
DPI scaling is set to 120DPI (larger scale) to make it easier to read as we are sat some 6 – 8 feet away from the screen, on a sofa using a wireless mouse and keyboard.
So the problems started with WordPress last weekend when I came to create a few more posts and on inserting the images found that my blog visitors were causing page stats to be recorded for each image click. Previously they were recorded properly as image clicks. This screwed up my stats and gave me a false high reading. Lots of my posts are image heavy as they are technical posts. However I only want to see page stats counted for actual page visits not for every image click on those pages. WordPress used to work fine for me until this update. I found out that the new media uploader had defaulted everything to ‘attachment page’ in the drop down box which was not actually visible to me as can be seen here in both Firefox (15) and IE (9.0.11) at 100% – 120% zooming which is what we normally run at when browsing and editing the sites.
Firefox and IE at 100% zoom
Firefox and IE at 120% zoom
and here is the screen after we have to scroll down to find the drop down box so that we can change the images to ‘media file’ so that they behave as they used to.
So as can be seen from the pictures above it is all too easy to insert your pictures with the wrong ‘link to’ setting. Now if you happen to insert all your images as ‘attachment page’ each time a vistior clicks on your image instead of recording an image click as it did previously it will instead record a page stat so it appears that you have suddenly gained a significant number of visits. However on closer inspection you will find that the images are now appearing under the page stats and giving false readings such as this:
It gets worse. Most of my vistiors come from google image searches. Prior to the recent media update when a visitor clicked on a picture in google search results they would get a picture popup from one of my technical posts. On closing the image they would be taken into the technical post itself so they could read about the article, get answers to their questions and go away happy. Sadly since the media uploader update the visitors clicking on google images (or even some text searches) will be taken to an attachment page which doesn’t have any technical text in it or any obvious way to get to the proper technical article that the picture was originally included in:
I want them to come into this article as they would have prior to the update so they would have found the full article with (hopefully) lots of useful information.
Now I spent ages over the weekend and the first half of this week deleting all the images off my posts that had been inserted as attachment pages (because I had not been able to see the drop down) and I re-inserted them as media files. However I have had reports today from friends that they are still getting the attachment page showing instead of the full article despite me having changed the images. This may be due to google caching results but it concerns me as I could be losing traffic if this continues for long as many of my visitors are not WordPress users and are not always as IT literate as myself. The attachment page does not make it obvious how to go into the technical article, I and many of us here will know to click the link in the header but not many ‘non wordpress’ users will know that, especially the less IT literate visitors that are used to clicking an image to take them into a page.
I hope this information helps those guys at WordPress who are investigating this and maybe they can start to understand the frustrations that the change has caused for those of use that are not your common or garden blogger sitting at a high resolution apple device 
Thanks Ian!
np, I hope it helps