Images uploading as blank… sort of

My last post uploaded images just fine. Now though I’m getting an error.
I tried both the muliti file upload and the browser one with the same results. (on Chrome).
I uploaded my file and when it’s done the thumbnail is a blank box with a little blue icon in the middle. When I click edit, the thumbnail is still blank with the icon and when I click edit image, then I can see it.
When it inserts into the post it is still the blank box with the blue icon.
Checking my cpanel directory and the files are there and show correctly. They also show correctly in my backup.
The file is 226kb.

Things I have tried.
-shortening the filename to 5 letters.
-upgrading my wordpress from 3.1 to 3.5.
-using the browser upload instead of multi file.

I have made zero changes to my blog since the last post. Any ideas why I can’t get my photo to upload? Any help would be greatly appreciated.

The blog I need help with is http://www.momroad.com.