After a fresh install of 1.3 I imported my categories, products, etc. into the new database. Everything appears to be working fine, but I see no product images. I ensured all the directory permissions were correct and that all images were in the image directory. The admin page for managing products shows the images just fine.
Here's a screencap of the front page

Here's a screencap of a product page

No image in the top part of the product display.
Any idea where I screwed up?