I did manage to check the obvious before making a thread. I checked the templates as well and they all looked alright in terms of the images path they were pointing too.
The post bit works perfectly fine when I click edit, the images don't go missing till I hit save on the quick reply.
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Edit: i changed the image path to the full url path and it corrected the issue. Thats good enough for me, does anyone know what could be requiring me to post the full directory?