It sounds like a setting has been altered.
Open IE -> Tools -> Options -> Security Tab -> click Custom Level.
Scroll down the list to 'Scripting' and ensure that these two itmes are enabled
Active scripting -> enabled
Scripting of Java applets -> enabled.
Then see if the pictures show.
If not, go back to Security Tab -> click 'Custom Level', in the next pane select Reset to Medium -> click reset -> OK -> Apply -> OK
See if that sorts the problem, if not go back to Security Tab and click Reset all zones to default level.
have you considered trying Firefox, that way it will give an idea of whether it is your browser or you computer.
dave