I've got the same problems. With images and with tech support.
I thought the old webpage builder could not get any worse. I called to get help and they switched me to this, for half the price. Thanks for the heads up that there was another option (that is WAY better, btw) for half price. And now it has piles of problems and no solutions. I can't believe I'm still with Godaddy. The only reason I hadn't switched was because I don't have time for this.
Sorry all I can do is commiserate. I have no answers other than to say I'm using my time on hold (again) to research Wix and Weebly. Any input on those options?
I am having the same problem... among many others. The good news is that I am the #225th caller in line and in 49 minutes I might speak to a customer service rep. Ugh. I've heard good things about Weebly... I don't want to spend the time building ANOTHER website, but this one looks and acts terrible!