I have the same problem reported by several others. I checked/did everything mentioned in this thread, no help.

The only "clue" (same as others experienced) is that the page says ImageMagick reported an error -- unable to open image, no such file or directory... But the image is exactly there, right where the error says it CAN'T be found. And, all folders are set to 777 to be sure that's not the problem.

All the imagecache folders are empty, though I also flushed the presets just to be sure. I even recreated the presets from scratch.

Also as reported, the ALT tag appears where the image should be, and it is a link to the original image.

UC is unusable without images, so there has to be something else to check/fix, but what?

-- John

Separate comment: The Product form apparently forces the image to be uploaded in my files folder, and doesn't seem to let me specify a subfolder as I do for everything else in my files folder -- to keep stuff organized and better control access. For instance, I have "articles" images in one folder, logos in another folder, downloads in another, etc. Is there a way to specify a subfolder for UC Product images?