I had this problem before the last time I had to add someone but somehow I figured it out. I also realized I couldn't use web designer 10 which I purchased because it was optimizing the photo and then it wouldn't show the expanded photo. I am noticing my new photo also says "Optimized" in the page and layer gallery but I never chose that option. That's probably what is wrong but I can't upload a non optizised photo to that position for some reason.