When editing an existing recipe or creating a new recipe, if I try to add a picture to one of the directions steps, the picture is visible in the edit view, but not in the recipe display view. The main picture for the recipe is displayed as normal, but for any pictures in the directions sections, there is a tag line <$obj$>1 that shows in the spot where the picture should be displayed. The number showing in the tag corresponds to the particular step of the directions to which it belongs. The directions pictures remain visible in the edit view however.
When you start up MasterCook right click on the shortcut and select Run as Administrator. See if that corrects the problem. Close the program. Then run it normally and see if that solves it.