Quote Originally Posted by DivaVocals View Post
If I had to hazard a guess, I'd bet that your Template Monster template is the issue.. It's likely that they stripped code Image Handler needs to work properly.. You can test my theory by trying to switch to the classic template.. I'll bet you will not have the same issues if you do..

Only other thing I can suggest is rechecking your install..
Hmm something def up. Cannot even select to use the classic template from Admin. It only shows the current one. First time I have come across this - do you know how I get that back?