Problem with inline images – wp-content/uploads incorrect

Hi all, I am not sure when this happened, maybe when upgrading to Ronan, but currently if I make a post and upload an image, the image is uploaded to the /wp/wp-content/uploads directory as normal, but the editor and subsequently the blog, is trying to show /wp-content/uploads as base path for the image -> no image to be seen.
I am unsure where the problem lies, if it is functions-post.php that has a problem, wp_upload_dir or wp_upload_bits somehow stripping the basedir or if this a .htaccess issue.
The website is on http://www.mysite.com which is redirected to http://www.mysite.com/wp/index.php using .htaccess which looks like this:
Options +FollowSymlinks
RewriteEngine On
RewriteBase /
RewriteRule ^$ /wp/index.php [L]
<IfModule !mod_rewrite.c>
ErrorDocument 404 /wp/index.php
ErrorDocument 403 /wp/index.php
</IfModule>

in the root
and

Options +FollowSymlinks
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /wp/
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /wp/index.php [L]
</IfModule>
<IfModule !mod_rewrite.c>
ErrorDocument 404 /wp/index.php
ErrorDocument 403 /wp/index.php
</IfModule>
in the /wp/ subdirectory

Can someone tell me what is wrong as I think the problem lies there??

Many thanks, Patrick.