I’ve had the same issue of images not showing in either the backend or frontend on a Magento Godaddy installation.
After trying many proposed fixes I found on the net, I finally found this blog post:
The solution for fixing the Magento product or sample data images is to delete or rename the .htaccess file in the /media folder.
Hope this helps others. Take the time to thank the author of the blog that provided this fix.
This worked for me as well. I believe that it’s a problem with the
statement in the .htaccess. I’ve heard in regards to other things that it could cause security issues so some hosts disable it on the server side. Commenting out that line may work for those of you with hosts who’ve disabled the FollowSymLinks option. The line would look like this:
This may be a better solution than renaming (and therefore completely disabling) the .htaccess file.
EDIT: I also ended up having to comment out the following lines:
#Options All -Indexes