Image problem in Add New Post

Hi all, this problem is driving me crazy! I have setup a blog and everything seems fine. But it prompted me to ugprade to 2.9 and I did. After so, it was working fine then suddenly I can’t add new image or audio to my post. The “add image” and “add audio” icon were gone and was shown as a red cross next to the word “add image”. When I click on it, nothing happen. Previously there will be a box pop up for us to select the image file but it wont show up anymore!! I right to right-click open new page, it shown it the new windeo but when I click Insert Picture, the code was not there in my post.

What’s going on?? I have tried to reinstall 2.9.1 and after that my whole blog crashed! then I start all over again because there was no backup then everything seems fine but THE SAME PROBLEM CAME BACK after 2 days!!!

I only have Atahualpa Theme and all other plugins were disabled. Can someone please help me? I don’t dare to reinstall again.

Aslso there is always an error stating “An automated WordPress update has failed to complete – please attempt the update again now.”

But when I check on my version it was fine. What’s wrong?