I don't know if this has been a problem to anyone before, I have had a quick look through the forum, and can't find anything similar. I have now exhausted all my ideas and thoughts, and am ready to uninstall.If anyone can help me, I would be very grateful.
To make things quick, I am copying the gist of the email I sent to my hosting asking for help:
"I decided in my infinite wisdom to run my blog on 'http://www.illusiocreative.co.uk' I have my portfolio on my site, but have been using Blogger to run my art blog, till now. I decided as I like WordPress so much, and would like more control, to install WordPress on illusiocreative.co.uk. I even purchased another database so there would be no conflict. I installed the blog into it's own directory, ergo http://www.illusiocreative.co.uk/blog
All seemed to go well, I have been able to post to the blog, customise it. However, it wont let me upload images. In fact, it wouldn't let me do anything at all, and kept telling me it could not access the parent directory and to check the permissions. I did, they were set to 777. In the end I had to change the permissions for EVERYTHING, which is a bad idea obviously. If and when I resolve this issue, I will have to carefully go through the site to change the necessary permissions back.
Anyway, when uploading it will now open an editor, which shows the image title, dimensions etc, but does not actually load the image. I actually copied the full url of one image to see if it was actually there, and what it showed, was the index page of http://www.illusiocreative.co.uk, not the blog.
I then checked the file via FTP, and there is nothing there. So, I am now at a loss, I can only assume there is some kind of conflict with the CMS already installed in the root directory. However, I figured that it would work fine if the WP pack was installed into it's own directory. I know plenty of people who have done similar."
As an example, here is my first post, with a thumbnail (yep, it is there..sort of):
And if you click on that little square, this is where it goes:
Why it's showing the index page of the main site I don't know. My portfolio is running in an artists CMS called indexhibit.
Btw, I am running wordpress on another domain and it's always been rinky dinky!