I think I may have found a minor bug, that I'm guessing has emerged with my upgrade to 3.2. Check it out. What happens is the quoted images that are "placed inline" in the original post, when quoted, now seem to be placed at the end of the post, instead of where they were initially placed. However the name of the image file remains in the original position in the quoted post.
I've checked it in prosilver and the style that I use as well, and the issue is the same. Can you replicate it?
Here's a screen shot w/ annotations...
Sorry, I'm just now realizing that the formatting that I pointed out was always like this. BUT, the issue that I see that is different is that the image names used to be link, so a user could open only the image in the browser window. That seems not to be the case any longer.