WordPress MU

I was running WP stand alone and just set up WP MU. I copied my uploads to the correct location in the WP MU directory and they appear in the admin as squares with text and in my posts as text links.
I know that the structure is different from stand alone to MU. In stand alone the directory for my upload folder was:
wp-content folder
- uploads folder
- - year folder
- - - month folder (example: 8)
In MU the uploads are placed inside the specific blog's area. For instance my new upload location would be:
wp-content folder
- blogs.dir folder
- - specific blog folder (1 in my case)
- - - files folder
- - - - year folder
- - - - month folder (example: 11 or 8)
Knowing this I copied the month folders from the old directory and placed them into the correct year and month folders in the new directory.
Their is nothing wrong with the images; however, when looking at the images in Manage > Uploads in Admin I see a bunch of blue squares with the titles I gave them. I am not able to see the image. Likewise, when looking at the posts that include these uploads, I can see text links but not the actual images.
To make matters more confusing, I can upload new images in WP MU to new posts and they appear correctly.
Any ideas?

Additional information:
I looked into the folders in an attempt to find more details. The new 11 month folder, the one with the images I recently uploaded directly in MU, includes an XML file with the date of the first upload in the title. The folder I transfered (copied) from the standalong for month 8 does not. Could this be a factor?

never mind, I figured it out. I had to go into each post with images and change the link code from http://domain.com/wp-content/uploads/2007/08/image.jpg to htp://somain.com/files/2007/08/image.jpg.