Very strange indeed. I see that you are using tim-thumb for your thumbnails and that the php script that creates and displays the thumbnails is throwing a php error:
<b>Warning</b>: touch() [<a href='function.touch'>function.touch</a>]: Unable to create file ./cache/0c45e49604d7b57da275782c45eb9776.png because Permission denied in <b>/wp-content/themes/church_40/tools/timthumb.php</b> on line <b>236</b><br />
<b>Warning</b>: Cannot modify header information - headers already sent by (output started at /wp-content/themes/church_40/tools/timthumb.php:236) in <b>/wp-content/themes/church_40/tools/timthumb.php</b> on line <b>246</b><br />
I would check the permissions on the timthumb cache folder and make sure that the script can write to it.
Also, if you view the source of your homepage you will see that tim-thumb is looking for the thumbnail in /wp-content/images/ - which is correct.
I think that your main problem stems from incorrect file permissions. I would guess that originally you /uploads/ directory was not writable by WordPress but when you created a new folder "images", it possessed the proper permissions. I think that tim thumb's cache folder is suffering from the same dilemma.
Hope this helps,