Another broken images upon upload issue on 3.7.1

Hi

So my website https://www.gertlushgaming.co.uk is having issues since the new 3.7.1 update released. It worked the day before the update, But now everytime I upload a image through the in menu media uploader, All I get is broken images. Publishing the post just shows a broken link and here is what I have tried:
-Turning off all plugins.
-Using the default theme both with plugins off and with plugins on.
-Resizing them through Photoshop like I do every time with my past pictures.
-I tried checking my default upload folder directory location thing but I dont have the option, So I downloaded a plugin to show it and it says the correct path /uploads. I even deleted the setting and re entered it.
-Looked at the permissions within FTP but to be honest I dont know what they need to be.

I need to get this fixed and in my anger last night I set up a new directory through my 123 reg account and installed Drupal. I havent touched the install and dont believe this would have any bearing on this issue. More so as I was suffering from the error way before I contemplated a Drupal installation.

I believe its best to be as open as possible when it comes to finding a solution. A post with the broken link can be found here if you need it.
Link

Can anyone shed any light on this please before I lose the will to carry on!

Thanks in advance

Jim