Read more not working

Unfortunately that doesn’t work, the code that displays the post up to the “more” tag stips all html from the post, so all images will disappear.
I had this problem on my site too…

I think I answered this in another thread, but <!--more--> certainly does work. Look at it in action here: http://wewantorganicfood.com/

All I did was add the <!--more--> tag in the spots where I wanted it to appear — and you can see that the images (which are above the more tag) still appear.

If you want to only show excerpts in posts (on the blog home page), then edit index.php in your theme, and replace the_content with the_excerpt. However, this can have its own problems.