Upload image problem Version 3.3.1

Have new blog and I am having difficulties uploading images.

Upload seems to progress fine get no error message but once finished get broken image link icon where picture should be, and image does not exist

Run two other blogs with no problems this one has got me stumped and no where to start as no error message.

Go to gallery and all titles of pictures exist but again with broken image link pic and file size of 0