Images help 4.0.1

[amaarvell]

Right .. when I click the add image button I get a pop up box asking me if i want it from a file on my computer or from a url off the net, and then it lets me upload it if its on my computer

however

when anyone else on the forum wants to add a picture they only get the option to put in a url,.. nothing at all to do with local files

any ideas why this is

i am set as administrator, but even the other administrators with seemingly the same permissions cannot upload from a local file