It looks like you have tried just about everything. That stupid FoxPro problem raises it's head now and then. I hope you remember to back up (Sqz) frequently.
The size of your project MAY have something to do with it. From what I am seeing in the manual, you can link an unlimited number of images, object, etc to an INDIVIDUAL. You can link more than one image to an individual, event, place or source with the option of selecting an image as the preferred one to appear in Media Tree, Family Tree, Family and Descendant windows. I am wondering if your adding an image directly to an event rather than to the individual and then linking to the event makes any diffence.
You ask for a step-by-step instruction to add an image. If you don't have the manual, you might want to look at it on the UFT CD (pp. 276-279, I believe) and maybe even print out those pages. I'm sure if someone else (once they find this forum is back up and running) has better advice, they will chip in here.Best of luck and Merry Christmas to you and yours.