Why No Images In Blog?

why isn’t my theme showing images in the blog?

here’s the whole theme’s index.php:

<?php get_header(); ?>

	<div id="page">

		<div id="contentleft">

<?php if ( $paged < 2 ) { // Do stuff specific to first page?>

<?php $my_query = new WP_Query('category_name=featured&showposts=1');
while ($my_query->have_posts()) : $my_query->the_post();
$do_not_duplicate = $post->ID; ?>

				<div class="featurepost" id="post-<?php the_ID(); ?>">

					<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>

					<p class="postinfo">By <?php the_author_posts_link(); ?> on <?php the_time('M j, Y') ?> in <?php the_category(', ') ?> | <?php comments_popup_link('0 Comments', '1 Comment', '% Comments'); ?><?php edit_post_link('Edit', ' | ', ''); ?></p>

					<div class="entry">
						<?php the_content('Read the rest'); ?>
					</div>

				</div>

<?php endwhile; ?>

<?php query_posts(array('post__in'=>get_option('sticky_posts'))); ?>

<?php if (have_posts()) : while (have_posts()) : the_post();

if( $post->ID == $do_not_duplicate ) continue; update_post_caches($posts); ?>

				<div class="post" id="post-<?php the_ID(); ?>">

					<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>

					<p class="postinfo">By <?php the_author_posts_link(); ?> on <?php the_time('M j, Y') ?> in <?php the_category(', ') ?> | <?php comments_popup_link('0 Comments', '1 Comment', '% Comments'); ?><?php edit_post_link('Edit', ' | ', ''); ?></p>

					<div class="entry">
						<?php the_content('Read the rest'); ?>
					</div>

				</div>

<?php endwhile; endif; ?>

<?php } else { // Do stuff specific to non-first page ?>

<?php if (have_posts()) : while (have_posts()) : the_post();
if( $post->ID == $do_not_duplicate ) continue; update_post_caches($posts); ?>

				<div class="post" id="post-<?php the_ID(); ?>">

					<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>

					<p class="postinfo">By <?php the_author_posts_link(); ?> on <?php the_time('M j, Y') ?> | In <?php the_category(', ') ?> | <?php comments_popup_link('No Comments &raquo;', '1 Comment &raquo;', '% Comments'); ?><?php edit_post_link('Edit', ' | ', ''); ?></p>

					<div class="entry">
						<?php the_content('<strong>Read the rest &raquo;</strong>'); ?>
					</div>

				</div>

<?php endwhile; endif; ?>

<?php } ?>

				<div class="navigation">
					<div class="alignleft">
						<?php posts_nav_link('','','&laquo; Previous Entries') ?>
					</div>
					<div class="alignright">
						<?php posts_nav_link('','Next Entries &raquo;','') ?>
					</div>
					<div style="clear:both;"></div>
				</div>

		</div>

<?php get_sidebar(); ?>

	</div>

<?php get_footer(); ?>