Why this problem occurs?
At first, I though it occurred due to my personal settings related to CKEditor. Then second thought goes to the another innocent module (assumed culprit by that time 😉 ) Imagresize module. But disabling them and replicating the same issue didn’t solve my problem.
How to make it working then (Any Solution) ?

ImageCache modules is of course is an efficient module and you should not uninstall it just because of this silly mistake. I have better idea to use it according to our requirements.
- Go to Imagecache module’s setting page and flush it out. This will surely work.
- To be in safer side, don’t enable extra unwanted sub-modules that you don’t need/require for your website. Uncheck option like imageMagick, GD2, UI etc.
- ImageAPI is required to make this module working properly
Note: Now Imagecache module is move to Drupal 7 core module 😀
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