Turns out that I had forgotten to register GflAx.dll as specified in the Wiki. Once I did that, image insertion started to work. Looks like you don't need to install comct232.ocx on Windows 7 (at least I haven't had to just yet. It works just fine without it). If you try to run it as Admin, it gives an error about Comctl32.ocx. However, on Windows 7, it doesn't seem like you need to run it as Admin, and it runs just fine as a regular user.
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