Your comments

Thanks, Sushubh. Everything you said was correct. Since you have a pro account, would you be able to verify that images under 5MB are not compressed?
I marked it completed because you answered it :) Everything you said was correct.
Hey, I just wanted to let you know that this has been completed! Hopefully it fixed the issue for you.
Thanks so much for letting me know about that. I'll fix it ASAP.
Thanks so much for pointing this out to me. It will be corrected soon.
I'd be glad to help you out with this. What browser (with version) and operating system are you on?
I definitely would like to resolve this, but we're having some trouble
reproducing the issue. Can you use 'dig' or
'nslookup' against i.imgur.com on a computer that is having the problem?
Are you sure you have Flash? Feather uses Adobe Flash for processing large images.
It sounds like your computer is having a hard time resolving the i.imgur.com domain. Can you try changing your DNS settings to use either Google's Public DNS, or Open DNS? More information on that can be found here: http://code.google.com/speed/public-dns/ and https://store.opendns.com/get/basic