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I don't know it exactly now, because its a while ago since I released this patch. But I think I listed the images according to the categories in the image manager. So if you upload an image it has to be added in a category. With the spaw uploader this doesn't happen. I think this is the cause why the uploaded images won't show up.
I also don't do any more developing on this one, since there is a good spaw module out there from the wfsections team. Another point is, that there will be released a great cross-browser wysiwyg editor (fully integrated into xoops) in the near future. You can find more infos about it at dev.xoops.org (Look for KoiviEditor).