RED X IMages WPMU

I have a WPMU site http://www.valleyspringsconnect.com I have added on two other sites http://www.valleyspringsconnect.com/studio42 and http://www.valleyspringsconnect.com/christinemiller

I have a red x in the images library and they dont show up on the site at all.

I have moved the htaaccess file to the wp-admin folder and reset permalinks, nothing.

The images I upload are not even in the images folder in cpanel.

I moved the htaaccess file back to the webroot of valleyspringsconect.com NOT in the WP-admin, reset permalinks and have same issue.

I have had this issue previously and moving the htaaccess file worked but its not helping now. Any ideas? thanks in advance for the help. I am about 90% geek and do pretty well with instructions. I have reviewed other posts on this subject and also changed the perms to 777 still nothing.