Images broken on my blog posts page only

Hi folks,
I am upgrading my current non-profits site http://www.virginia21.org with a new backend and features, this is hidden at beta.virginia21.org

Beta.virginia21.org/about and beta.virginia21.org/blog should look the same the former should have a blog nicely formatted and sidebar within the body area but the images are located in the same place.
However the graphics are all broken on the blog side. Also, the blog posts should look almost identical to the way posts look on the default page as I modified the default page for this site, but it doesn’t.

I have the site setup so that there is a static front page and the blog shows up on an interior page. I modified the default, and just for good measure just redid that modification just to be on the safe side.

I know that the images want to pull from
/blog/…/images/filename.jpg
but there is no /blog folder it is created by wordpress just as /about it

However, on the “about” page (and all other interior pages for that matter)the links work correctly and find the images

I’m totally stumped and need help, Help!!!