None of the scripts are working anymore in Firefox 2.0.0.10!

"error: uncaught exception: [Exception... "Component returned failure code: 0x80040111 (NS_ERROR_NOT_AVAILABLE) [nsIDOMCanvasRenderingContext2D.drawImage]" nsresult: "0x80040111 (NS_ERROR_NOT_AVAILABLE)"

Firefox 2.0.0.10 has several new bugs.
One of them is canvas.drawImage is not working in this version. The bug has already been fixed and the new version 2.0.0.11 is now available. You can also degrade to an older version e.g. 2.0.0.9.

I've tried the scripts in IE8 and it doesn't seem to be working?

Internet Explorer 8 beta 1 release is partially in worse shape. It doesn't support VML in strict mode even if you're running in IE7 mode. Currently, VML is supported only in quirks mode! There is a lot to do for Microsoft until the final release.

What's that? "Internet explorer cannot open the internet site... operation aborted"

Internet Explorer doesn't like the open <base> tag. Do the following: Exchange...
<base href="http://www.yourdomain.com/">
...or...
<base href="http://www.yourdomain.com/" />
...with...
<base href="http://www.yourdomain.com/"><!--[if IE]></base><![endif]-->
...and you're good.

Your script kills the wrapping behavior implemented by style declaration (e.g. float)!

No and yes! Yes, if you set a class/id/behavior to work only on <img> tags. For example:
img.floatleft {margin: 5px; float: left; }
This is because the scripts exchange image elements with canvas or vml elements! To solve the problem you can add...
img.floatleft, canvas.floatleft, var.floatleft {margin: 5px; float: left; }
...or simply remove the tag restriction...
.floatleft {margin: 5px; float: left; }
...and you're good.

My anti-virus program raised a warning saying that the script includes an exploit.

Under certain circumstances with a heuristic search the exploit "EXP/HTML.VML.Gen" will falsely be discovered in "Corner.js" only. I would fix it if the circumstances would be known, but even the virus-checker manufacturer couldn't tell me why!
The initialization of the VML support ...
document.namespaces.add("v", "urn:schemas-microsoft-com:vml");
... seems to release the virus warning!

Is it possible to hide images, so the transition can not be seen?
Its pretty disturbing that the images are first shown and then they refresh.

To solve the problem you can add the following lines to the <head> section of your page...
<script type="text/javascript">
<!--
var canvascheck = document.createElement('canvas');
if(canvascheck.getContext || (document.all && document.namespaces && !window.opera)){
    document.writeln('<style type="text/css">');
    document.writeln('img.glossy { visibility: hidden; }');
    document.writeln('<\/style>');
}
-->
</script>
<script type="text/javascript" src="glossy.js"></script>

...and you're good.

With instant.js, the image proportions seems to be compressed/stretched.

Yes. This is because of the border width, which is the same for height and width. Therefor the aspect ratio of the image will be compressed/stretched a little bit. This effect grows it the ratio of width and height differs from the aspect 1/1 and starts to be noticeable at an aspect of 3/2. Since version 1.5 you can use the class "preserve" to preserve the aspect ratio.