I transferred my website to a live hosting from my local computer. Now the image files don't seem to upload to the correct folders. The images that I added while the site was local appear fine, but if I try to add new ones the preview is broken. However, if I click the link next to the preview I get the image. It seems like the images are not going into the sites/default/files/style/... sub directories. All of directories have permissions of 0755 or 0775.
admin/config/media/file-system page on your site to see if the file directories are set correctly and accessible by Drupal. It's possible the server is configured differently from your local installation or the relative directories are set incorrectly in the configuration fields.
As for the comments about permissions and ownership - it seems you can run
chmod on the directory, so the intention was that you would run
chown on the directory to set the owner to the Apache group (on Ubuntu it