I’m not sure what happened to my last post. Basically I updated my site and got the same issue as the original poster with the grey squares. The first time I opened the square it opened the images in carousel but after I deactivated/ reactivated the plugin and refreshed my permalinks I got a message to save or download the image.php file.
I then disabled the Nextgen gallery plugin which gave me the thumbnails back in the image store but still got the message to open of save the image .php.
Any help would be great as I have a requirements for both plugins.