The image-caching problem is not directly related to RadEditor but is a default browser behavior. You are not seeing the modified image because the browser is displaying a cached one - that is why we recommend to save the modified images under new name.
That behavior could be workarounded by appending some random string to the src portion of the img tag to each image which is used in the editor. For example, you can implement the extra random parameter to the image URL by modifying the line 300 of the dialogs code to match the following one:
src = item.get_url() +
In the following article you could find detailed information on how to modify RadEditor's built-in dialogs:
Customize Built-in Dialogs
. However, this change will cause the dialog to download the image everytime an image is selected and will slow down the performance.
Regarding the issue with target folder, most probably is due to permission restrictions. Could you try the test from the following help article to check if the application have read / write permissions on the server:
Unfortunately, I was not able to reproduce the problem that you have shared in your latest post. Most probably it is connected with the additional in your code so in order to be able to provide more to the point answer I will need to examine and debug it locally. Could you prepare a sample fully runnable project reproducing the issue? You could see how to isolate such in the following link: Isolating a problem in a sample project
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