I'm having the same problem. I used to do a little hack where I would attach a jpg picture to a post and then inspect and copy the source code of the uploaded image and then delete the attachment and insert the jpg url into the body of my post. Now looking back, all of my posts done using this method have broken images, and that little hack no longer works because the attached file just displays in the sourcecode as a thumbnail preview.
Is there a better way to upload and insert a photograph into a post? (rather than attaching it below?)
And is there any way to recover the lost images in past posts?