Check out my site – the Image Module seems to be working fine here:
This is the 3.0.2 version of MM – and the latest WordPress. I had to put a TEXT module between each IMAGE and and an HTML <br> to separate them – works very nicely!
Go to the menu items that show progress of the shop construction – all images are being handled by MM 3.0.2. There is no place (at this time) for anybody to log on to the site, so should be a good test for you.