so, any other suggestions on getting the attachment to show as an image and not just a file name?
Control Panel » General Display Settings | Primary
Expand the "Topic & Post Page Settings" group
Enter "Max File Size for Displaying Uploaded Images Inline" in MegaBytes.
If the image is larger than this number, it will just be shown as a file attachment without a thumbnail, and without a gallery view. Just as an attachment.
So if you want all attached images to display inlined in the gallery view, use the same MB here, that you used in your "Max size for attached files" field for that forum/group.