We have been using the following workflow:
- In desktop... create a mosaic dataset out of all the scanned images
- Publish the mosaic dataset to an image or map service
- Create tiles with ArcGIS for Server for the area of interest
- Create a tile package out of the ArcGIS for Server cache
- Upload this package with the share package tool
- Create a tiled service out of the uploaded tpk
This provided the best results for us.
If you don't have ArcGIS for Server you can try using ArcGIS for Desktop to create the tpk (from the file > share as menu) and share that tpk.
Can you check the services item details, what does the tiles progress dialog tell you? Are there levels at 0%?
I recommend logging an incident with tech support so they can further assist you.