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This issue is still a problem. Probably the reason for it is
a badly supported image selection.

After clicking on an image a bad node is extracted from the
selection in KupuEditor.updateState(event) method.

Looking at the code and debugging in Venkman it seems that
Mozilla's (Mozilla 1.7.3, haven't tested IE yet) selection
object gives bad results - namely the body element.

Looking into the provided event object - it can be seen that
it contains a proper target of the click (an img element).

I don't understand, it seems that it already does that, can
you confirm that? Or do I overlook something?

Right, I noticed that would be nice as well... I'll put it
on the todo list.

If an image is selected the image box should show the
contents of the src attrib. It (the @src contents) then
should be editable as well.