No…  sfposts will not contain any images…  it contains only the post content…  it may contain some html img tags, but no uploaded images (semantics perhaps)…

so if uploads are occurring are they showing in posts? complete with the the attachments box below the post with links to the attachments?

With the error and missing table, I highly doubt it…  The image may be uploading and an html img tag to it generated in the content, but you probably dont have the real attachment…  it is only stored in the sfpostattachments table…

so something went amiss on your server at install or upgrade and the script that creates the table errored out…  to get rid of the error and really get attachments, you will have to manually create that table…

what version of file uploader??  want to make sure its the latest…