Images on Posts_Blogs

Greetings; We just completed a re-design of our site, but one thing that is happening is that any images inserted into a blog post or page do not show up in the body of the text. Even after the image is inserted while in draft mode the image appears as a cryptic icon. Also, when uploading images, the thumbnail doesn’t appear in the media uploader library as an image, just a blue box. Any idea what could be happening?
Thanks,
Kevin