Once selected as the attached image, the correct image is referenced in the content, however

My first suspicion was the file settings: I follow the following convention when setting up my sites' file configuration:

domain.com/files/clientname/

Creates sub-folders for each client I add to a single codebase, and it makes it easy to move the files out of a shared codebase should it be necessary.

Images still don't display in the dialogue after resetting the file settings to defaults though.

After setting up two image presets in imagecache, I get the following error message

warning: Invalid argument supplied for foreach() in /Library/WebServer/Documents/cerebra55/sites/all/modules/am/am.module on line 170.