Strange behaviour in 'Post Editor' no GUI

[dingobruce]

When I go to edit a post or create a new post and I click on insert image no GUI pops up to select/upload an image just the following text is inserted into the page: 

If I click to make something bold it is surrounded by asterisks ** **



This is a fresh install of the latest version downloaded from bludit.com

Any ideas?

Thanks!

[Edi]

This is the syntax of the Markup language.

See for example here:

Write Faster: Your Manual to Markdown, the Web's Simplest Plain-Text Syntax