Media Library not showing thumbnails

I had a WordPress site 3.4.1 on a different server. Installed a fresh install of WordPress 3.4.2 on a new server that is a development server and has an ip address to get to it. Waiting to get this all setup before switching DNS.

I imported the database and moved all the images from the uploads folder. I’m on Wired Tree for this development. The old one is on Single Hop.

I’ve moved around 30 websites before and have never had this problem. I’ve tried regenerate thumbnails but get an error on every image: “DayDeadPoster_Oct2012″ (ID 23133) failed to resize. The error message was: The originally uploaded image file cannot be found at” (yep it doesn’t give me a path the sentence just stops).

I’ve gone to many other forum entries but cannot find anything that helps.

I have 3 plugins installed: Yoast SEO, WP Better Security, All-in-One Event Calendar by Timely, Facebook and Regenerate Thumbnails. I’ve tried disabling and, alas, nothing.

I’ve also tried putting in the block of code in the regenerate thumbnail option in this thread: HERE.

I can go into the Media Library, all I see is the white/empty thumbnails, click to edit one, white thumbnail again. If I click on the thumbnail it opens up a page with just a text link to the actual image. When I click that text link to the image it opens in the browser and the image is there and appears just fine. If I take the url of the image in the edit screen of an image from the Media Library, and paste it in a new browser, the image shows up fine.

All of these images show up on the pages/posts fine too except for I cannot add them as featured images.

Using the theme:“Max Mag” Documentation by “MVP Themes” v1.01

All of the images show as they are attached to the correct post/page.

I can add new images just fine. The thumbnail shows up great. I would really like to try and avoid having to upload EVERY single image by hand.

If you have other questions on what I’ve done please let me know.

Thank you for any help or suggestions.