Gallery Images not saving in posts

I haven’t seen this behavior before. I create a new post, upload images using the standard WP gallery, then choose to insert the images from gallery into the post, save as draft or preview, the post displays without the images. I switch to HTML instead of visual, and insert the images and they are saved. I notice that there is a lag between switching from Visual to HTML and I have to refresh the page to see the html code. Also, trying to modify the image size in Visual failed to reduce the image size.

I am a bit at a loss. I turned allow_url_fopen to OFF because it says it is a security risk, but I don’t know if that is needed to be open to save images in posts.

Also, I notice a drop in called: advanced-cache.php which I think it installed by supercache, but I have supercache turned off while working on the files.

Any help or insight appreciated.