Here's the typical workflow for the aviary image editor:

1) Select the image for editing thru the file manager
2) The editor passes the url for the image to aviary
3) Aviary downloads the image so it may be manipulated in the editor
4) When the image is saved, aviary makes a call to C5's import file tool (tools/files/importers/remote.php)
5) The file is imported back into the file manager
6) Post-processing for the image happens (by default, this is where thumbnails are created). When using the aviary editor, this is the code that is used: aviary_image_editor/libraries/file/types/image.php

It sounds like there may be a problem between step 4 & 5 which is usually related to the webhost blocking aviary's call to remote.php. For example, there have been problems where DreamHost blocks the call because the querystring parameters passed contain "http://" (you can fix this by requesting that DreamHost remove that "http" filter).

Hopefully that helps, but please let me know if I can provide any other information.

thanks

mb

It Works great now! Thanks for the help, just had to contact my webhost to unblock.