I've been experiencing this issue for far too long, and finally taking the chance to ask how to remedy the problem. My site is popservations.com
While images attached to posts properly appear as thumbnails in the list view for my mobile site, when viewing these posts in full, the image(s) are nowhere to be found. They don't appear with the full text.
I just checked the settings again and don't believe there's anything that should be causing this (an option checked or one left unchecked), so it's a bit frustrating as to why this is happening.