Hi ta:
Lets try several things.
First, be sure you are running the latest version of AOL (mine is 10.3.7 build version 4136.308 (US)).
Then try accessing AOL through the web (www.aol.com) for your mail and see if it behaves the same way. If it does not, lets try the following:
Trash the AOL preference file (com.apple.aol.plist) and restart (you will have to reenter your AOL preferences.
Then in AOL preferences (display pane) I would empty the cache. I also have show images and used compressed images checked. In downloads (preferences) I have display images as they download checked. I am giving you my settings in case they are relevant.
If none of that works, I would uninstall AOL (I think there is an uninstaller, although I have never used it), download a new copy of AOL, and go from there.
Barry