I figured it out, permissions needed adjusting on wp-content folder.
Thanks for your help..
All upload paths are blank in Settings.
The images currently on the site I didn’t upload using the imaage uploader, they were either copy/pasted from an old blog or like you said about the most recent images, hot-linked (which I would rather not be doing).
If I go to make a new post, select the upload image option and pick an image from file, insert into post. It comes up with a tiny square with what looks like a broken page inside it. So when I preview that post there is no image and no icon.
