I had issues uploading images at first, but the chmod permissions fixed that up. Since day 1 though, even with the default theme, cropping has never worked for me. See attached image of what happens when the crpping screen is up.
It does actually crop, but it doesn't let you manipulate it at all. The image underneith will be the result if I click 'crop image'. Its as if a js file isn't there or something?