Adding pictures to a post

Right so my wife is working on her personal blog which is in with her main on the server she uses. Everything is running fine but now she is having issues adding pictures when she is trying to post. It seems then when she hits add media images it will upload an image from the hardrive, then ask her to log in and says 404 error cannot be found in I.E. She had tried just adding an image with just the URL and it’s the same thing. I checked the path it uploads to and made sure a folder was there.

I have yet to solve this so right now she is just coping the code from another post and changing the address of the picture. This will work for now of course but it’s still annoying. Is this caused by having 2 blogs on the same server? Is there a work around for this? So far nothing else has come up to be an issue.

Thanks for the assistance.