I just checked again and it's still happening. I sent another bug report to the "Powers That Be" at Opera; I haven't heard back, yet.
I would recommend that EVERYONE who is experiencing the problem submit a similar report. This is the text of mine:
OK, Opera guys …
This is the second time I've reported this bug, but so far nothing's been done, and no one has contacted me. I'm not the only one to experience this; Painterwoman and Poolboy have also mentioned it.
This is the bug:
When posting photos to go WITHIN a blog, the photos come out unbelievably effing HUGE! and only a small section of them shows, in the width; all of the height is shown. The photos (resized, I might add, in my computer) are so big that they are beginning to pixelate. This is NOT good!
I have tried this several times over the past couple of days and the problem persists. I have even experimentally tried to post some of the photos that I've posted without problems before … they are similarly affected, so it's not my photos.
Please fix this; it is MOST annoying!
der Wandersmann
Don't copy mine, but you can use it for a model. Maybe that will build a fire under them.
der Wandersmann 
PainterWoman
December 23, 2008 at 4:12 pm
They must be working on something because now everyone's avatars are missing, plus half the photos in my albums are blank squares with just the title. Look in your albums and see if your photos are there. I'm sure they are working diligently.
derWandersmann
December 23, 2008 at 11:12 pm
Well, somewhere in your downloaded program files, unless you're a hell of a lot more conscientious than I am, you'll find all your Opera .exes from all the versions you ever had.Install the last one that worked right. These guys are always trying to rush folks into updating, which I've always found to be a BAD IDEA.
derWandersmann
December 23, 2008 at 11:12 pm
Yep; all there.
PainterWoman
December 23, 2008 at 11:12 pm
I was having the problem on the Opera browser that I downloaded a few days ago. I've now taken it off and am back on my IE browser and everything's fine. I may try the Opera browser again tomorrow…or maybe not.
luckeeleo
December 24, 2008 at 11:12 am
Its the holidays too.Many people on vacation.All the smart ones at least.Happy Holidays everyone!
PainterWoman
December 24, 2008 at 11:12 am
But I only had one version, the first one I downloaded a couple of days ago. I reloaded it this morning. Still no pics in my albums or avatars. I will continue using IE until this gets fixed. In spite of this, I wish you a wonderful Christmas.
derWandersmann
December 24, 2008 at 12:12 pm
Thank you … and the same to you …
frivoloamilano
January 4, 2009 at 3:01 am
Same problem with my photo….today!Have a nice 2009ciao, frivoloamilano
jwfreeman
January 10, 2009 at 9:01 am
Yep. a lot of my photos did the same thing too bud