Images were working OK. I was able to upload and place them using the JCE Editor. Had not updated for a couple of weeks. When I added a new blog I was able to upload image and place in the correct position. Until I hit update. This closed the blog. When I reopened it the link to the image was gone and it was just displaying a white square witha red X.
Even on preexisting blogs with mo amendments. when I hit Opdate the lonks to the imges were broken.