It must be some server/hosting issue as this happened only with wp blogs hosted at 1 host of the few I host on.
http://img526.imageshack.us/img526/9030/adminareawp.jpg
Issues:
1. all the buttons (blod, italic, align...) are gone
2. when mouse over on dashboard items ("pages" in this instance) drop down does not pop to the right as it is supposed to
3. When trying to upload picture/media instead of pop up window it opens in full page (not a problem) and it is impossible to upload media as when I choose picture and click "insert into post" - nothing happens.
Thanks