I use Wordpress 2.7.1 for this blog. Earlier today I ran into an issue where the image would upload to the Wordpress Media Library, but the link that Wordpress created to the image would not work in the post.
Several other posts I found on the internet mentioned editing some settings in the miscellaneous screen under the site administration settings. Miscellaneous? What miscellaneous?

Where is my missing miscellaneous?
I went into the wp-admin directory on my wordpress server and found that I did indeed have an options-misc.php page. I typed that into my browser’s address bar and hoped for the best. Sure enough it pulled up the settings page for configuring the image URL location on my Wordpress installation.
I noticed that the setting for “Full URL path to files” was incorrect. I tried blanking the entry (the recommended setting), but that did not work. I then noticed that my Wordpress installation had added the full URL of my website into the directory structure for the wp-update directory. I added that extra bit to the end of the image path…

Wordpress miscellaneous settings with corrected full URL path.
and presto, I had images.
If anyone has a suggestion for getting the miscellaneous option to appear in my admin menu, please let me know.