Solution:
Look into this: http://codex.wordpress.org/Moving_WordPress
There’s a link on there for a “Search and Replace for WordPress Databases Script” tool that’s very handy (make sure to read the instructions and have a backup of the db before using it). The problem is that image URL’s and other things are stored in the database and will reflect the URL of the dev location. That tool will go through and properly update all instances from the dev URL to the final location.
Normally before you move a WP site you also want to update the site URL in the General settings as well, which may be contributing to your second problem.