The permissions seems to be off with the image.
I cannot look at the image directly at all - it throws me a 403 forbidden message.
Check again the permissions for the folder ("images"). It should be owner, group and world with read and write permission. The whole shebang.
CHMOD 777 is the cli equivalent.
1. Check the permissions.
2. Upload a new image.
Does it work? - Great, if not:
Change permissions on a single image already uploaded within the images-folder.
Does the image come up now?
Let me know how it comes out.