http://blueimp.github.io/JavaScript-Load-Image/test/ tests work 100%.

Result on http://blueimp.github.io/JavaScript-Load-Image/:
"This demo works only in browsers with support for the URL or FileReader API."

Browser: Iceweasel branded Mozilla Firefox (version 17.0.9) on Debian Linux 7.x (ie FF17, gecko). FF 17 should support both API's, no errors reported to JS console.

Perhaps a browser-sniffing/UserAgent issue?