Image Uploader displaying “default.png” and not image

Hi, I am having an issue with my WordPress image uploader… I have read other topics and could not find the answer to my problem.

When uploading an image within a post everything goes fine: Choose File > Uploading…> Crunching…> Then it shows me the file in the gallery, but it’s not the image, it’s the image “default.png“. It’s just a gray box image (https://jodyheavener.com/2009/wp-includes/images/crystal/default.png).

Can some one please help with this? The uploader was working great until a day ago when this problem came up.

Please note that I just installed 2.6.2 maybe a week ago, and am using a modified version of the Arthemia theme.

Plugins (if this helps):
Admin Management Xtended
Google Analyticator
MiniMeta Widget
WordPress Admin Bar

Thanks,
Jody.
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