Hi Guys. Sorted! The problem was a file permissions issue on the server. That’s why it all looked ok in the code but still didn’t load images.
If you’re having issues like I and Joe above, check out this post regarding the timthumb.php (called thumb.php in the widget) that the ‘advanced recent post widget’ uses and adjust your file and folder permissions as recommended:
https://www.binarymoon.co.uk/2010/11/timthumb-hints-tips/
Cheers
Robin