Control-click the pic and save to disk: Preview can open it.

As for your Terminal Window, that is definitely wierd. I see there is a bit of the // in the bottom right corner. Can you drag that?

I'm also looking for the keyboard shortcuts for "maximize" but not having much luck.

Any way, some preference/system component is messed on your machine.

Time for (at least) a Safe Boot (holding down the shift key right after the restart to run the equivalent to Disk Utilities "Verify and Repair Disk." Once the grey cog shows, the shift key can be released.