ImageField Preview Won't display

1) CCK 5.x-1.7
2) 5.x-2.1
3) Writeable (IIS- file eventually saves)
4) public
5) label: thumbnail
max res: 200x200
max size: 512
max num images: 0
image path:
file types: jpg jpeg png gif
alt text: unchecked
custom title: unchecked
help text:
required: checked
mult values: unchecked
default: unchecked

6) expect to see preview of image after uploaded
7) see broken image instead. Image URL path points to directory where file will be but isn't until submitted
8) Create new blog post -> browse image -> upload

Detailed:
After uploading an image the preview displays a broken image file. The image URL points to where the file will be after submitting but it doesn't exist in the directory when the user is on the submit page. I've seen several other posts regarding this issue but no solutions. Does anyone know a fix to this or can point me in the right directions?

Much thanks.