WordPress Multisite image upload issue

I have issue uploading images using a wordpress multisite environment. I've posted this to the Wordpress community and got a superb assistance from lpstenu.

Here's how I started noticing I can't upload any images to other websites in multisite environment:
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"Uploading images in wordpress multisite questions.

If I upload an image at king.net it goes to http://www.king.net/wp-content/uploads/2012/05/20120521-064035.jpg

while if I upload the same image through friended.com it goes tohttp://friended.com/files/2012/05/20120521-063835.jpg but the image won’t work.

I dried using the un-mapped version e.g. friends.king.net (for friended.com) got the same results.

How to fixt it?

Thanks in advance."

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The forum member "lpstenu" asked mbe to verify my .htaccess and httpd.conf file has "allowoverride" set to all. I verified, and also contacted by web hosting company to re-verify this for me. Another set of eyes, is a good thing.

And I posted my .htaccess file, as depicted below so I can get more input.

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<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]

RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# uploaded files
RewriteRule ^files/(.+) wp-includes/ms-files.php?file=$1 [L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule . index.php [L]
</IfModule>

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Then "lpstenu" posted this link (http://codex.wordpress.org/Multisite_Network_Administration#.htaccess_and_Mod_Rewrite) to check my .htaccess configuration. 

He directed me to see a samples of .htaccess file for subfolder and subdomain. That's where I found out that something is wrong with my .htaccess file.

SubFolder Example

# BEGIN WordPress
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# uploaded files
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$2 [L]

# add a trailing slash to /wp-admin
RewriteRule ^([_0-9a-zA-Z-]+/)?wp-admin$ $1wp-admin/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule  ^[_0-9a-zA-Z-]+/(wp-(content|admin|includes).*) $1 [L]
RewriteRule  ^[_0-9a-zA-Z-]+/(.*\.php)$ $1 [L]
RewriteRule . index.php [L]
# END WordPress

SubDomain Example

# BEGIN WordPress
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# uploaded files
RewriteRule ^files/(.+) wp-includes/ms-files.php?file=$1 [L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule . index.php [L]
# END WordPress

To solve my upload issue, I copied the subdomain example, and it works perfectly. Come see the website www.friended.com or www.king.net for live demo