Media: Add New problem

Hi,
On one of my sites when I try to add a new pic to my media library, it isnt working. Here is what happens:

Using the browser, I choose the pic to upload, but the pic doesn’t show up in the upload window, rather a small blue box with a question mark is there. Then I hit save all changes just in case, but a window pops up and says “To view this page you need to log into area “WP-Files” on mydomainname.com:80.” Then below that it says ‘Your password will be sent in the clear.’ And it asks for a Name and Password.

I have no idea what to do here…any suggestions? Thank you all, and to all a good night.