SW 2012 SP2 sketch picture functionality and Insert->Picture

I have just "upgraded" to SW 2012 SP2 and am seeing two problems right off the bat:

1. Insert->Picture does not seem to work while in a sketch (or otherwise). There is simply no option to insert a picture under my Insert menu whether I'm in an active sketch or otherwise.

2. If I insert a picture using Tools->Sketch Tools->Sketch Picture, then I only see the first page of the Sketch Picture PropertyManager. Tools->Add-Ins->Autotrace has been checked under both "Active Add-ins" and "Start Up", and I have even rebooted the computer in case that was causing it not to register the add-in properly. Nothing works to show the second page of the Sketch Picture PropertyManager with the Autotrace functionality.

Any help would be greatly appreciated! I'm familiar with these functions as I have used them repeatedly in SW 2010 without issue.

SolidworksSketching