Are you using the default skin or a custom one?

Have you tried tracing the styles/attributes being applied to the image icons using IE Developer Tools or Firebug?

Is there a possibility that the site is running under ASP.Net 4.0 ?

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Bill, WESNet Designs
Team Lead - DotNetNuke Gallery Module Project (Not Actively Being Developed)
Extensions Forge Projects . . .
Current: UserExport, ContentDeJour, ePrayer, DNN NewsTicker, By Invitation
Coming Soon: FRBO-For Rent By Owner

"Yes, it is running under ASP.NET 4.0"   First, congratulations on getting 5.3.1 running under ASP.NET 4.0 !!

Please see this whitepaper on changes in ASP.NET 4.0: http://www.asp.net/LEARN/whitepapers/...

The one that concerns borders around images is this:

"Controls that previously rendered border="0" (controls that derive from the ASP.NET Table control, and the ASP.NET Image control) no longer render this attribute."

I would try adding the following style definition to the default.css stylesheet found in \Portals\_default\ folder:

IMG
{
    border: none;
}

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Bill, WESNet Designs
Team Lead - DotNetNuke Gallery Module Project (Not Actively Being Developed)
Extensions Forge Projects . . .
Current: UserExport, ContentDeJour, ePrayer, DNN NewsTicker, By Invitation
Coming Soon: FRBO-For Rent By Owner