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I am running 126.96.36.199 community, but this problem has existed since version 6.
The Journal module or Member's Directory show broken placecard images instead of thumbnails. The /profilepic.ashx?userId=662&h=32&w=32 link shows a broken images as well. Profile pictures show up properly though.
I have reinstalled both modules, verified the two lines in the web.config file and search every know issues that I can find.
Are there some core files that need to be replaced, or perhaps an SQL script that I can run, I'm thinking that the problem may have something to do with the urlwriter.