WordPress does not have any sort of ability to do an “automatic upgrade”. So if you did something like this, then you used a plugin or somebody else’s software to do it. Not WordPress.
From the directions Otto linked to:
Step 2: Upgrade your installation
Visit your main WordPress admin page at /wp-admin. You may be asked to login again. If a database upgrade is necessary at this point, WordPress will detect it and give you a link to a URL like http://example.com/wordpress/wp-admin/upgrade.php. Follow that link and follow the instructions. This will update your database to be compatible with the latest code. If you fail to do this step, your blog might look funny.
I point this out because I’ve been scouring the Forums all day to solve a similar problem. I am able to upload images from my computer to my database using ftp, but once uploaded they do not work.
I realize this may be my problem, not WordPress’s, but it only occurred after I did the same “database upgrade.” Please help!