I just used the upload feature in the Write Post section to upload some photos and yes, it upped just fine. To the wrong place it turns out. Seems it didn't understand my path compeletely. So instead of going to http://www.yoursite.com/art/wp-content... it went to http://www.yoursite.com/wp-content... which explains why the images didn't appear. How do I set the path correctly?
Also, once I did set the path correctly, I noticed everything scaled down to a nice thumbnail size. OK, all and good there but is there a way WP can automatically add a link to the larger pic?