Upgrading Drupal

I've been working on a Drupal v7 project for some 6 months it was based on Drupal v7.0 and a few of the modules were playing up so I decided to attempt an upgrade via Drush 4.x. After a few hours today with Drush,

Hi,

I've just updated my site to Drupal 7.14, and my site is displaying this message repeated many times:

Notice: Undefined index: default_image in image_field_prepare_view() (line 207 of /home/[my database name]/public_html/modules/image/image.field.inc).

Any idea what causes this problem?

I have two errors I have noticed when upgrading from D6 to D7 I do not know if they are related:
1)
When I visit the profile pages of users with error reporting on:
Fatal error: Call to undefined function profile_view_profile() in /home/www/xxxxxx/sites/all/modules/ctools/plugins/content_types/user_context/profile_fields.inc on line 36
2)
When I visit the general site page:
- Notice: Undefined index: caller in author_pane_content_type_render() (line 42 of /home/www/xxxxxx/sites/all/modules/author_pane/plugins/content_types/author_pane.inc).

I'm new to Drupal and starting a new job in 2 weeks. They are running Drupal 6.15 and want to upgrade to 7 soon. Also, need to stand up a development site because only running a production site now. Which should I tackle 1st? Thank you!

I want to use Drupal to build a website-for-a-good-cause that will hopefully help many people out of poverty. It'll be a niche website that is very similar to www.kickstarter.com in D7. But I'm totally confused as to which modules to use in terms of easy and user-friendly pledges/donations/payment processing???

This is the basic idea:
It's going to be a local micro-financing website. For example, Tom is a poor farmer in a remote country and he wants to start a small dairy production business so as to help feed his family. He needs to raise $5,000 so as to purchase the cows, build a shed, buy the necessary bottling equipment, etc.

Tom comes to Example.com and registers. He creates a Project node where he describes his business idea and how he will use the money and states that he needs to raise $5,000 over the next 2 months so as to start his small business.

Mr Goodheart is an average middle-class dude who like to give to charity every now and then. He comes to example.com fills in his card details in his profile settings, and then finds Tom's project and decides to pledge $250 to Tom's business idea. Mr Niceman also contributes $400. And so forth.

For a nice UI, each Project page will also display a little "thermometer" showing how much of the goal amount has been raised.

Drupal Newbie. I tried to Update, from Drupal Core 7.12 to 7.14. This is the first time I have tried to update Drupal Core and it did not go well.

The upgrade.txt file says to do the following, which I did:

6. Run update.php by visiting http://www.example.com/update.php (replace
www.example.com with your domain name). This will update the core database
tables.

If you are unable to access update.php do the following:

- Open settings.php with a text editor.

- Find the line that says:
$update_free_access = FALSE;

- Change it into:
$update_free_access = TRUE;

- Once the upgrade is done, $update_free_access must be reverted to FALSE

When I tried to run update.php I got a blank screen.

When I went into the Drupal Administration Panel, which was working perfectly before this stage of the update, I got error messages.

I get the following error if I try to browse the web site now:

Warning: require_once(/home/computer/public_html/drupal/includes/bootstrap.inc) [function.require-once]: failed to open stream: No such file or directory in /home/computer/public_html/drupal/index.php on line 19