There's no file conversion when upgrading from Filemaker 10 to 11. The only changes are to the application itself. Thus, you shouldn't have all your referenced images disappear on you.
What other changes have you made?
Is your file still in the same location it was when you used FileMaker 10?
Have any directories or drives that contain the images files been renamed?
To look for possible issues, you might create a calculation field that returns text, select the name of your container field as the sole term in its expression and place this field on the layout next to the container field. The third line of text in this field will show the filepath and you can check this to see where the container is looking to access the file.
That's what I thought...no changes to ANYTHING! Everything is intact, folder containing pix is the same, file is the same, everything is just the way it was.
That's a good answer...I'll try that. Thanks!
If everyting looks correct, you might try testing a recovered copy of the file--perhaps the file or layout has a problem that only becomes apparent with FileMaker 11.
Best practice is never to actually use a recovered file, but instead to replace the recovered file with an undamaged back up copy if it is at all possible.