I checked and all the files are still in the folder that the path shows. i also searched the forum and found where i needed to verify global options and if they were correct to hit revert twice in storage options and still no luck.
If you have verified the global and storage options I also see your using the watermark script to serve the images. Check your watermark path in watermark options. Correct this path. If it is right try removing it and see if images show. If so then your problem is your watermark file