There are a few issues that still need correcting and this is one of them...arggh.
All the settings that I see and set are at 275k....and yet it's not working as expected.
I have a call out to someone about this and expect it will be fixed in a few days.
Until then...calling the images from flickr or photobucket works fine.
So sorry for this hassle - I'm trying to solve multiple problems at the same time these days.