Images – How to correct

I am having a problem with the way my images appear on my site. Many of my images are not showing and the few that are are distorted. Even when you click on the story they will not appear.

I just updated my wordpress and updated my theme. I am using Magazine Basic. How do I correct these things? Should I just spend the money to upgrade to this http://themes.bavotasan.com/our-themes/premium-themes/magazine-premium/ ?????

Take a look at my site to see http://www.cigarimpulse.com