IT'S FIXED!!!!!

I found the problem. A Security setting was on and for some knuckleheaded reason it was disallowing the download of images. Here's the skinny for those of you who understand this stuff.

HotLink protection prevents other websites from directly linking to files (as specified below) on your website. Other sites will still be able to link to any file type that you don't specify below (ie. html files). An example of hotlinking would be using a <img> tag to display an image from your site from somewhere else on the net. The end result is that the other site is stealing your bandwidth. You should ensure that all sites that you wish to allow direct links from are in the list below. This system attempts to add all sites it knows you own to the list, however you may need to add others.

First, I am glad to hear that you've found the solution to the problem!

But more importantly, thank you for reporting back what was the cause.

Many times people report problems, but then never get back to tell us the solution. And next time somebody is having similar issue and finds the thread, they will never learn how to solve it. So reporting back the solution is always very much appreciated.