The FileUpload control does nothing other than upload the file. When it is performing it's postback you need to save the data to the harddisk for permanent storage.
On page refresh you will need to load the image from the disk again, you can use the asp:Image tag to display it.
See the sample at the bottom of this page for saving a file to the disk using the FileUpload control:
http://msdn.microsoft.com/en-us/library/system.web.ui.webcontrols.fileupload(v=vs.100).aspx[
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Hope this helps you on your way.