Problem with Media Uploader (WordPress 3.3.2)

Hello
I’ve tried for months to upload images on this wordpress and for some reason the images just won’t upload. The image itself uploads but the thumbnail is broken, it doesn’t appear on the server page, and it just doesn’t work for anything I try to use it for whether it is for slideshow or for pages. I tried everything including disabling all plugins, reinstalling themes, and uploading directly to the server but nothing is working.

Here is a screenshot of how it looks on the wordpress.
http://img38.imageshack.us/img38/1435/wordpressneedhelp.png