search and replace – problem finding all links

Hi:

Several weeks back I migrated this site to the root directory but I am struggling with identifying where the problem is.

Here is what I have done thus far.
I have a site which uses the Announcement and vertical scrolling news plugin – this is where the problem lies -although in trying to identify the errant URL’s I am using the search and replace plugin after reading through the forums here.

The site is as follows
http://looneyslaxclub.com and the issue is on the right hand side – there are images next to several of the news items that are not showing up – it is an animated gif – the file is uploaded to the media library and the link has been checked and there is no reference to the /wordpress/ folder in the image link.

Also the links in the news are showing up as 404 pages with the /wordpress/ in the URL of the page but the file is not in the wordpress directory it is in the wp-content/uploads

I have set the media to the wp-content/uploads folder following the migration.

I have run the search and replace for the following strings
http://looneyslaxclub.com/wordpress/wp-content/uploads/ –search
http://looneyslaxclub.com/wp-content/uploads/ — replace

and I get 0 results…

obviously I am missing something simple here…could someone steer me in the right direction, it would be greatly appreciated, thanks much!
Leslie