jpg upload url shows as gif ?

[binary]

i have installed a fresh copy of Presta Version 1.3.7
when i enable friendly url the images show up as a question mark? when i disable friendly url the images appear again?

Here is a copy of my .htaccess file:

RewriteEngine on
RewriteCond %{REQUEST_METHOD} !^(TRACE|TRACK|GET|POST|HEAD)$
RewriteRule .* - [F]
RewriteBase /
Options +FollowSymLinks

(pound) URL rewriting rules
RewriteRule ^([a-zA-Z0-9-]*)/([0-9]+)\-([a-zA-Z0-9-]*)\.html(.*)$ product.php?id_product=$2$4 [L,E]
RewriteRule ^([0-9]+)\-([a-zA-Z0-9-]*)\.html(.*)$ product.php?id_product=$1$3 [L,E]
RewriteRule ^([0-9]+)\-([a-zA-Z0-9-]*)(.*)$ category.php?id_category=$1 [QSA,L,E]
RewriteRule ^content/([0-9]+)\-([a-zA-Z0-9-]*)(.*)$ cms.php?id_cms=$1 [QSA,L,E]
RewriteRule ^([0-9]+)__([a-zA-Z0-9-]*)(.*)$ supplier.php?id_supplier=$1$3 [QSA,L,E]
RewriteRule ^([0-9]+)_([a-zA-Z0-9-]*)(.*)$ manufacturer.php?id_manufacturer=$1$3 [QSA,L,E]


(pound) Catch 404 errors
ErrorDocument 404 /index.php

End of htaccess file any help would be greatly appreciated.
Note the (pound) is used here as it shows as a number one in the Forum

second question:

any way of limiting the number of pictures that show up within a category?


Thanks for you time, greatly appreciated..