Problems installing WordPress in a subfolder

Hi

I am having problems installing any media files (pictures) in WordPress which has been installed into a subfolder on my 123-reg hosting package.

This is one of 4 intended WordPress installations on my hosting package. The first one is in the main root directory is working fine.

The second is is in a sub-folder – this WordPress installation was transferred from another host and different domain. It too is working fine.

The third is a fresh WordPress installation into a subfolder (thebestweddingpresent.com/connectiontoconsciousness), using the automated script on the 123-reg control panel.

After the installation, we received an message (onscreen) from WordPress, asking us to click on a link as follows:

http://connectiontoconsciousness.com/connectiontoconsciousness/

http://www.thebestweddingpresent.com/connectiontoconsciousness/

http://thebestweddingpresent.com/connectiontoconsciousness/

http://94.136.40.103/~thebestweddingpresent.com/connectiontoconsciousness/

Please note: whichever link above that you click will become the default URL for the site. If you go to the wrong one, for example if you need to use the temporary URL, you can change the default URL by logging in to WordPress and going to Settings->General.
For details on how to configure this CGI Script, click here.

This didn’t make any sense to me, as we wanted the default URL to be:
http://connectiontoconsciousness.com/ (i.e. none of the above)

I didn’t click any of the links and subsequently couldn’t access the CGI Script link. Instead, we edited the Site Address (URL) in WordPress to http://www.connectiontoconsciousness.com

and left the WordPress Address (URL) as:

http://www.thebestweddingpresent.com/connectiontoconsciousness

However, having successfully created posts and uploaded media file to the WordPress media library, these media (jpg pics) do not display either in the library or in posts (the image is there as an outline, but not displaying).

For example, here is a picture that has loaded OK and I can see and open it via FTP (using Filezilla):

http://www.thebestweddingpresent.com/connectiontoconsciousness/wp-content/uploads/2014/01/CTC-Banner.jpg, however I get an error message in WordPress if I type that URL into a browser:

You don’t have permission to access /connectiontoconsciousness/wp-content/uploads/2014/01/CTC-Banner.jpg

I can also see:

Remote site = /public_html/connectiontoconsciousness/wp-content/uploads/2014/01

I have applied the fixes for mapping a domain and pointing my domain to 123-reg hosting:
http://www.123-reg.co.uk/support/answers/Web-Hosting/Domain-Mapping/how-do-i-map-a-domain-name-to-my-hosting-2576/
http://www.123-reg.co.uk/support/answers/Web-Hosting/Getting-Started/how-do-i-point-my-domain-to-123-reg-hosting-4120/

I think something else need to be changed, either a URL path or possibly user permission.

Can anyone help?