labels--HELP!

I am testing this post to see if the "labels" appear underneath. They should be under each old post now but aren't appearing.

*They don't work....does anyone know what I'm doing wrong? Under my blog-post layouts, I have the "labels" selected to show. What more ? And while I'm at it---my new pictures I've been uploading don't hyperlink to a larger image page anymore. I had to create a new link to a separate image host.