When an image is deleted from your Media Library it's not longer on WordPress.com servers and cannot be displayed when browsers call for it. When the images are in your Media Library you can insert them into your posts and they will display when browsers call for them. Have you resolved your image issues? I'm asking because I can see images all over your blog. If you cannot see them please do what follows.
If you are not running one of the browsers and versions listed at http://browsehappy.com/ please try upgrading or switching first.
Note: If you are using an IE9 browser in compatibility mode that makes it render as IE7 and IE7 is not supported. To disable see > http://www.sevenforums.com/tutorials/1196-internet-explorer-compatibility-view-turn-off.html
If you are running one of the browsers and versions listed at http://browsehappy.com please do these four things:
1. Try clearing your browser’s cache:
http://www.google.com/support/accounts/bin/answer.py?hl=en&answer=32050
2. Make sure that you have third-party cookies enabled: http://en.support.wordpress.com/third-party-cookies/
3. Try with all browser extensions or add-ons temporarily disabled.
4. Try enabling HTTPS: http://en.support.wordpress.com/https/
If it’s still happening, let us know which browser (and version of it) you’re using and post any error reports you get.