YES!!! Happened last night. About 5 different pictures I tried to attach to a post showed up on the back end, but didn't appear on the blog. Messaging in the blog said the picture had no data. Respondents said the picutre was corrupt (even though it works on other sites and shows up in image viewers). Other pictures I had were also corrupt (or they just didn't work). Didn't matter if it was a jpg, gif, or png.
I believe there's an issue either with WordPress or this Headlines custom theme (actually, a few issues, but that's another story).