What am I doing wrong that the "No access" message is showing up where images should be?

I am still using wp 3.2.1 and membership 2.1.3 ( I did upgrade to 3.3, but membership wasn't working out with 3.3 so I went back).
In membership options, I have protected content page to show the "no access" page. In my media library, all of my images show "none" for protected content group.

The problem is that the images I have inside of my posts are not showing up....the no access page message is showing instead :slight_frown:

How do I fix this?