yes, the code is the same no matter what browser you are using, this is what leads me to believe it is a server level issue.
By accessing the image file directly:
2ladies.jpg
I am taking the power store code out of the equation.
looks like there might be a problem in the way the image was saved. I downloaded the image file to my desktop and tried to open it in IE and it still wouldn't work. The only way I could get it to show in IE was to open it in PhotoShop, then resave it as a jpg.