diff --git a/wp-admin/js/media-upload.dev.js b/wp-admin/js/media-upload.dev.js
index 672d81de93..75478725ac 100644
--- a/wp-admin/js/media-upload.dev.js
+++ b/wp-admin/js/media-upload.dev.js
@@ -3,7 +3,9 @@ function send_to_editor(h) {
 	var ed;
 
 	if ( typeof tinyMCE != 'undefined' && ( ed = tinyMCE.activeEditor ) && !ed.isHidden() ) {
-		ed.focus();
+		// restore caret position on IE
+		if ( tinymce.isIE && ed.windowManager.insertimagebookmark )
+			ed.selection.moveToBookmark(ed.windowManager.insertimagebookmark);
 
 		if ( h.indexOf('[caption') === 0 ) {
 			if ( ed.plugins.wpeditimage )
@@ -55,4 +57,16 @@ var tb_position;
 
 	$(window).resize(function(){ tb_position(); });
 
+	// store caret position in IE
+	$(document).ready(function($){ 
+		$('a.thickbox').click(function(){ 
+			var ed;
+
+			if ( typeof tinyMCE != 'undefined' && tinymce.isIE && ( ed = tinyMCE.activeEditor ) && !ed.isHidden() ) {  
+				ed.focus();
+				ed.windowManager.insertimagebookmark = ed.selection.getBookmark(); 
+			} 
+		}); 
+	}); 
+
 })(jQuery);
diff --git a/wp-admin/js/media-upload.js b/wp-admin/js/media-upload.js
index 8ed45caa55..201f6abc2c 100644
--- a/wp-admin/js/media-upload.js
+++ b/wp-admin/js/media-upload.js
@@ -1 +1 @@
-function send_to_editor(b){var a;if(typeof tinyMCE!="undefined"&&(a=tinyMCE.activeEditor)&&!a.isHidden()){a.focus();if(b.indexOf("[caption")===0){if(a.plugins.wpeditimage){b=a.plugins.wpeditimage._do_shcode(b)}}else{if(b.indexOf("[gallery")===0){if(a.plugins.wpgallery){b=a.plugins.wpgallery._do_gallery(b)}}else{if(b.indexOf("[embed")===0){if(a.plugins.wordpress){b=a.plugins.wordpress._setEmbed(b)}}}}a.execCommand("mceInsertContent",false,b)}else{if(typeof edInsertContent=="function"){edInsertContent(edCanvas,b)}else{jQuery(edCanvas).val(jQuery(edCanvas).val()+b)}}tb_remove()}var tb_position;(function(a){tb_position=function(){var f=a("#TB_window"),e=a(window).width(),d=a(window).height(),c=(720<e)?720:e,b=0;if(a("body.admin-bar").length){b=28}if(f.size()){f.width(c-50).height(d-45-b);a("#TB_iframeContent").width(c-50).height(d-75-b);f.css({"margin-left":"-"+parseInt(((c-50)/2),10)+"px"});if(typeof document.body.style.maxWidth!="undefined"){f.css({top:20+b+"px","margin-top":"0"})}}return a("a.thickbox").each(function(){var g=a(this).attr("href");if(!g){return}g=g.replace(/&width=[0-9]+/g,"");g=g.replace(/&height=[0-9]+/g,"");a(this).attr("href",g+"&width="+(c-80)+"&height="+(d-85-b))})};a(window).resize(function(){tb_position()})})(jQuery);
\ No newline at end of file
+function send_to_editor(b){var a;if(typeof tinyMCE!="undefined"&&(a=tinyMCE.activeEditor)&&!a.isHidden()){if(tinymce.isIE&&a.windowManager.insertimagebookmark){a.selection.moveToBookmark(a.windowManager.insertimagebookmark)}if(b.indexOf("[caption")===0){if(a.plugins.wpeditimage){b=a.plugins.wpeditimage._do_shcode(b)}}else{if(b.indexOf("[gallery")===0){if(a.plugins.wpgallery){b=a.plugins.wpgallery._do_gallery(b)}}else{if(b.indexOf("[embed")===0){if(a.plugins.wordpress){b=a.plugins.wordpress._setEmbed(b)}}}}a.execCommand("mceInsertContent",false,b)}else{if(typeof edInsertContent=="function"){edInsertContent(edCanvas,b)}else{jQuery(edCanvas).val(jQuery(edCanvas).val()+b)}}tb_remove()}var tb_position;(function(a){tb_position=function(){var f=a("#TB_window"),e=a(window).width(),d=a(window).height(),c=(720<e)?720:e,b=0;if(a("body.admin-bar").length){b=28}if(f.size()){f.width(c-50).height(d-45-b);a("#TB_iframeContent").width(c-50).height(d-75-b);f.css({"margin-left":"-"+parseInt(((c-50)/2),10)+"px"});if(typeof document.body.style.maxWidth!="undefined"){f.css({top:20+b+"px","margin-top":"0"})}}return a("a.thickbox").each(function(){var g=a(this).attr("href");if(!g){return}g=g.replace(/&width=[0-9]+/g,"");g=g.replace(/&height=[0-9]+/g,"");a(this).attr("href",g+"&width="+(c-80)+"&height="+(d-85-b))})};a(window).resize(function(){tb_position()});a(document).ready(function(b){b("a.thickbox").click(function(){var c;if(typeof tinyMCE!="undefined"&&tinymce.isIE&&(c=tinyMCE.activeEditor)&&!c.isHidden()){c.focus();c.windowManager.insertimagebookmark=c.selection.getBookmark()}})})})(jQuery);
\ No newline at end of file
diff --git a/wp-includes/script-loader.php b/wp-includes/script-loader.php
index 6cad9ed55b..1174b12009 100644
--- a/wp-includes/script-loader.php
+++ b/wp-includes/script-loader.php
@@ -367,7 +367,7 @@ function wp_default_scripts( &$scripts ) {
 
 		$scripts->add( 'admin-gallery', "/wp-admin/js/gallery$suffix.js", array( 'jquery-ui-sortable' ), '20110414' );
 
-		$scripts->add( 'media-upload', "/wp-admin/js/media-upload$suffix.js", array( 'thickbox' ), '20110414' );
+		$scripts->add( 'media-upload', "/wp-admin/js/media-upload$suffix.js", array( 'thickbox' ), '20110425' );
 		$scripts->add_data( 'media-upload', 'group', 1 );
 
 		$scripts->add( 'admin-widgets', "/wp-admin/js/widgets$suffix.js", array( 'jquery-ui-sortable', 'jquery-ui-draggable', 'jquery-ui-droppable' ), '20101007' );