Many people are facing issues with pictures once they have re-listed an item. This has resulted in missing pictures in listings. Haim has acknowledged the issue and is currently working on it.

Meanwhile, you can try “removing” the picture from the listing and uploading it again. It has worked for some.

UPDATES
posted by JB

http://www.etsy.com/forums_thread.php?thread_id=5177898

stellaloella says:
Hi everyone. The engineers are looking into the image error issue that started happening yesterday. They’re working diligently to get it fixed up as quickly as possible.

We’ll give you an update as soon as we have more info, or have it fixed up.

Sorry for the inconvenience, and thank you for your patience and continued support.

and another update

stellaloella says:
I was just informed of something very sad and super important:

You will need to re-upload any of the images effected(sic) by this issue once it is resolved.
Posted at 11:46 am, August 2 2007 EST

http://www.etsy.com/forums_thread.php?thread_id=5177898&page=4

MikeH says:
Good afternoon.

I’ve just finished fixing the problem. You should find most (if not all) of the images are back at this time. If you aren’t seeing them, please try holding the shift key and hitting the reload button on your browser. If they still don’t come up, you may have to re-upload them.

We apologize for the inconvenience.

Thank you.
Mike