I actually found that %TEMP% took me to the wrong location.
If you are running Win7, the easiest thing to do is just to search for mpextended, then remove any sub directories called imagecache for each of your search results.
Mine was in C:\windows\temp, C:\users\default\local settings\temp, and I think one other place. That did fix it for me.
You Sir, are a genious. That fixed it for me.
Diebagger: It might be an idea if possible, to have ampdroid clear the image cache on exit maybe, to prevent this issue again??
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