After vexing weeks of Googling and clicking through the menus of Dashboard, the Image Uploader problem is laid to rest.
The problem was I have a custom location for the WordPress files and the installer took the physical path so the files were not uploaded. After I fix the Upload folder, the files are in the server but not displaying. A quick check of the source file shows the path is wrong. But where is it kept?
Both settings are kept in the “Settings, Miscellaneous” section. And they need to be updated or nothing comes out!