I’m working on getting Photopress to work well with WordPress 2.0, but it’s not quite there yet. If you’d like to try what I’ve done so far, download photopress-wp2.zip. Note that you’ll need to disable the rich text editor for image inserts to work right.
Update: I’ve replaced the above file with a new version that seems to work better. Image inserts should work under the rich text editor too now.