New Images not showing after upgrade

I upgraded to the new version of Gallery3 and since then I have had problems with the newly uploaded images not showing at all (Neither thumbnails or larger images) - just the URL. The images that were uploaded before upgrading are showing fine. Any pointers here?
Thanks in advance for your help.

Thanks Floridave - Here's an update. I hope that you can help me further.
If I upload images to an existing Album (Actually there is only one) that was created before the upgrade, everything works fine - Perfect Thumbnails, resized image and original image. If I create a new Album, I have no thumbnails or resized images although I do see the "placeholders" and links. This appears to be the way that access permissions are set on the new folders that are being created, so if I amend the permissions at the server end for the var/Albums/albumname, var/resizes and var/Thumbs/albumname everything works fine. Is there a ay of forcing the permissions from within Gallery3 so that I don't have to amend these every time

Thanks in advance for any assistance.

URL - www.janepacker.info/gallery
Using GD graphics kit
var/log
<?php defined('SYSPATH') or die('No direct script access.'); ?>
2013-01-27 13:48:03 +00:00 --- error: File not found: Valentines/Massey_JPD_Dec18_0107-ThumbEdit
2013-01-27 15:00:46 +00:00 --- error: File not found: Valentines