Hi! I've been a WP user for around 3 years and have yet to come across this problem. I recently transferred my primary domain to someone else, leaving my current blog and making it the new primary domain.
After transfer, when I attempt to upload photos/images, the uploader goes all the way through and shows it as successful, however, there is only a blank window where the image should be. Upon insertion into the post, it shows as a broken image (X).
I have never had this problem, nor have I been able to find a fix here in the forums.
I have made sure that under Settings>Misc it shows it as blog/wp-content/uploads.
Thanks in advance for any help!