Self Hosted, Problem uploading photos

I have a self hosted WP blog and today i couldn’t upload any photos. i have no idea what to do to fix this. i deleted some from my library hoping to free up storage and found out they get deleted from the post when you do this. any help is greatly appreciated since i cannot post a photo until i can figure out how to fix this. i tried making the file size smaller and they still wouldn’t upload.

http://loveofhome.net