Upgrade from 1.2.1 to 1.5 on Windows 2003 server – no images displayes, malforme

After the upgrade all the images links were malformed

Example :
<img src=\"http://www.noseasboludo.com/images/teletubbiesputos.jpg\" alt=\"\" />
As you can see there are a lot of / and \ in wrong places. I tried to edit the code line with the right and proper way but after I republish everything goes back to the wrong messed up code

The manage tab redirects me to a wp-admin/edit.php which shows me an error 404

and last but not least on Miscellaneous Options, the Destination directory is malformed , example:
C:\\Domains\\noseasboludo.com\\wwwroot/images

If I remove the double \\ and save, it comes back with the \\

Help Please!

My Blog can be reached at http://www.noseasboludo.com