Problem Applying Custom Images

Balsamiq (desktop version) continues to time out (beach ball of death on mac) when I try to add a custom graphic. I can browse my computer and select the graphic, but then when I try to apply the image to the mockup, beach ball of death... This happens about half the time and only seems to have surfaced since I upgraded to Snow Leopard.

Note: I think the problem may somehow be related to the search mechanism in the file browser in balsamiq. The issue always seems to happen when i search for an image to apply on my computer. When I do not search, it seems to work fine.

Very frustrating!