Nope, couldn't get it to work at all. Not sure if I did something wrong, but I redid the install/setup a few times. You can give it a shot yourself and then open up a new thread or something, if it doesn't work for you, you can simply disable the mod in the AdminCP and things will be back to normal.
You don't have to empty a file - I didn't even have the celphotopopup directory on my server. What you do is create an empty file named editor_plugin.js and put it into www\js\tinymce\plugins\celphotopopup, and that should take care of the problems.
I installed successfully but I'm a little confused how to add a button. I want to add one that works just like the insert media button but for a specific BB Code Media Site that I added. Is there a directory where each button's instructions are placed? It appears that the CelEditorButtons2 template is just referencing something else? And where would the image be uploaded to?