Re:Gallery problem, image won't show
Check that you actually have the GD and/or Imagick extensions installed. You can easily do this by running the 'phpinfo' option in the admin panel.
When specifying the pathname of the location to store images on the local disk, you MUST end the path name with a slash. This is important! So in your case it should be:
/tiki/var/images/
Also it is better to use full path names than to use relative references like '../'