If you didn’t see images earlier today
Google has acknowledged that there’s a problem with their image backend. You can read about it (and any future updates in this Blogger Status message.
Updated to add this problem apparently also affects uploading images, so if you’re trying to post a photo of your blocks and it’s not “taking,” it’s most likely NOT you or anything you’re doing.
One more update, Blogger has updated their Status message to say that the problem is resolved. Now, back to the blog eye candy.