Thank you for the read and reply anyway! 🙂
I am using the Rescue theme at http://www.conwayanimalwelfare.org and seem to be having the same issue as BeccaFWCS. I, as well, was able to bypass the problem by loading the featured image while in Twenty-Twelve theme and then revert back to the custom theme. The image remains and displays, albeit less than desirably, but remains nonetheless.
Well, my mistake for not searching adequately for a similar post. I found this today: http://ww.wp.xz.cn/support/topic/does-not-display-photos
I will try to follow that one instead. My issue appears to be theme related.
