Thank you for your inquiry. A change was made to the functionality of Scrapbook so that images uploaded will respect the default security setting defined for new entries. Since you have the default minimum security set to Friends Only for your journal - http://www.livejournal.com/manage/settings/?cat=privacy - your images also initially upload as Friends Only as well.
You'll need to edit any images you want to be public and adjust their security level accordingly.
So hopefully, the people who aren't on my friends list will be able to see a yummy picture of DMc, as well as those who are.
