Hacked?! Can’t upload images

I am making my second post, my first with images. I can’t upload images from my computer or from my website. I am getting the ../../.. thing, which in researching the forum I find that Otto said it means that you have been hacked.

I have almost got my blog completely done and have had nothing but trouble. Am I going to have to upload all new WP files and start over? I don’t have a backup as I did with my website.

I don’t know…seems one would be safe just trying to get a blog started. I also think that WP 2.5.1 is badly flawed from I read in the forum. Is there anything I can do besides start over. I doubt if I could bear doing that and besides if it is that easy to be hacked it would probably happen again.