Can't see or upload images with tiny mce

[handcoded]

Hello

I have setup 1.2.3 Black Rock here http://www.princehall.co.uk/cms/
Everything apart from the image uploading with tinymce works great. I can use the image manager and that uploads to /uploads/images/ correctly and creates thumbnails but I cannot view these images when I browse for them when adding content.

I have checked all of the paths in my config file and they are correct. Permissions are setup correctly and I do not know what else to try. The web site can't go live until I get all of the images in.

Help!

I had a quick nose around the forum and this seems to be a fairly common error.
One solved thread mentioned setting the umask to 022 but I have no idea what this is.

Any help to sort this out would be appreciated as I have tried everything I can think of. 

[handcoded]

Hope I get a reply but in the meantime I took the liberty of doing a fresh re-install in another folder called cms2.
I made no alterations and went to upload an image and had exactly the same result as above.
The server the site is running on is not a mickey mouse server and is a bog standard cpanel machine.

I have other cms sites running perfectly well on this server but have asked my web host to look into it to see if there are any strange permissions set that I cannot see.

Hopefully by the end of the day the problem will be fixed, the images will be uploaded and the customer can give me a few quid for my troubles.