problems uploading pictures in 2.9.1

hi there all,
I am using a free theme from wordpress and have just started a webstie called Unitedkingdroid.com about android products, am using currently a wootheme called “original premium news”.
But when i add an image to work as a little picture beside the article before you read it, all it shows is a little red cross. No matter what picture i add, nor what theme i have.
I can add images into the post itself but not as previously mentioned. Please what do i do, i don’t know very much about websites, i was considering paying $70 for a wordpress theme to see if that might help but i dont want to spend all that money to find it doesnt work.

Many thanks, Togsy