WordPress MU

I am not sure what changed -I can upload pictures but I can't insert pictures into a post. I get encrypted code like : /* '); /* ]]> */ in place of the picture. It worked earlier this week. I deactivated all plugins and it made no change. Could it be something in the htaccess file (inlcuded below). I have a wordpress site on the same server and have no problems with that so it can't be a server setting.
Trying to set this up for a school blog: URL is http://parklandsd.org/web

Thank you :-)

htaccess file

RewriteEngine On
RewriteBase BASE/

#uploaded files
RewriteRule ^(.*/)?files/$ index.php [L]
RewriteCond %{REQUEST_URI} !.*wp-content/plugins.*
RewriteRule ^(.*/)?files/(.*) wp-content/blogs.php?file=$2 [L]

# add a trailing slash to /wp-admin
RewriteCond %{REQUEST_URI} ^.*/wp-admin$
RewriteRule ^(.+)$ $1/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule . - [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(wp-.*) $2 [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(.*\.php)$ $2 [L]
RewriteRule . index.php [L]

<IfModule mod_security.c>
<Files async-upload.php>
SecFilterEngine Off
SecFilterScanPOST Off
</Files>
</IfModule>

Forgot to look in the mu-plugins folder. I deleted the users_edit_theme plugin and I can now insert pictures into the post. Maybe this will help someone else.

having the same problem..it worked until now..can upload but can't add to post..