Here we go again! Images

I searched before i posted this (nothing has solved the problem). I also viewed the first 10 pages of this forum before posting (nothing fixed the problem).
Well, i am running wp 2 and trying to insert an image into a post. So, i goto “write” enter some text, click on the “browse” button (inside the upload tab). Find the image then click “upload”. The image appears in the “upload” box. I then click the image and toggle between use original then click send to editor. The image appears in the upper text box. I then click “publish” then “view site. No image!! I have toggled between all options, nothing. Image is on the server and the folders are writeable. Sometimes, a link appears and if i click that link, it shows the original size image. Why do images not appear on the post??

Chris