For some reason after having the phone for 2 months I am no longer able to send or receive pic messages. Was no longer able to after updating the phone.
I can imagine how frustrating this must be. Have you tried re-programming your phone by dialing *228 send and option 1?
What update? I'd try turning off the phone and pulling the battery for a few minutes. Then put it back in and reboot the phone.
I find a simple power off/power on cures a lot of troublesome behavior on my Droid.