Broken uploaded images (tried everything)

For the last few days I’v been trying to upload and display images in wordpress. The file uploads but doesn’t display a thumbnail or full image in the up-loader or in the posts.

I’v already tried:

Checking the upload path in wordpress all options at /wp-admin/options.php and making sure its the same as my FTP path to the uploads folder.

Iv made sure the uploads folder has 777 permissions & 755 permissions from my FTP (neither worked)

I’v re-installed a new wordpress download on my root server and re-uploaded my theme.

I’v activated a twenty eleven default theme to check if it was theme related. It’s not.

Anyone have any more ideas? It would be much appreciated as always!

Thanks
C