1.7.1 is in the store, which resolves these issues. Go get it!
For those that are on iOS and downloaded the new version (1.7) recently, we are aware of 2 issues with image uploads, and are working now on fixes.
1. If the image you uploaded was previously edited on the phone with the iOS editing tools, a small and blurry version of the image is uploaded.
2. We included a new way to select one or more images when adding them to a post. While this is working well, the old way of selecting a single photo from the Photo Library is broken. It will still include the image(s) you tap on, but there is no indication it did so successfully.
Both issues will be resolved as quickly as we can get through the Apple review process. Please let us know if you have any additional problems by commenting on this post.
cc/ @ello @elloblog @markgelband @lucian @sean @colinta