photos uploads not showing up on new install

I have been using wordpress for years. I just install a brand new wordpress blog. Something weird is happening that never happened before.

When I upload a photo, it saves it in wp-content without creating an uploads folder. However, in the post it puts the uploads folder in the link in the post, so I end up with a broken link. This is really bizarre! This is afresh brand new installation of wordpress 2.8.4

Kyle,