Now it is not working for png either and is giving a ton of errors... Not sure why I was able to upload png files yesterday. Very strange... Please see new screenshot
Are you sure the image is a PNG? You can't simply rename a jpg to png for example as it hasn't been encoded as png. I suggest contacting your host with those errors in your latest screen shot (earlier screenshots there are none, just a Joomla SEF issue with some content article URLs) as it looks like GD may not be compiled properly. You also seam to have imagemagick available and maybe want to give that a try.
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It seems the jpg I was trying had some issues and other ones I try seem to work fine, although pngs were also giving me some issues. I'll try imagemagik. Thanks for your help as always, sometimes the simplest answers can only be reached with help. Please close this as solved...