Thanks for your response songdogtech!
My link in the HTML editor for that image is
<img title=”VeggieWrapThree” src=”../wp-content/uploads/2009/10/VeggieWrapThree.jpg” alt=”VeggieWrapThree” width=”400″ height=”276″ /></p>
which seems to be what you have for the valid URL? When I go the Settings/Misc uploads are stored in this folder:
wp-content/uploads
and there is a check mark in the month/year based folder box.
What do you think? (b/c I honestly have no idea!) ??