Can’t insert pic into post

I am trying to upload a pic while in the Write Post screen. It appears to upload just fine, but when I send it to the Editor, it gives me a broken image symbol. When I “Browse” the pics, it shows up a blue square – no pic. I even tried uploading the image file directly into the upload folder via ftp and inserting a pic using the url – same thing.

I tried deactivating all plugins to see if there was some conflict, but that didn’t change anything.

Any ideas what could be causing this?