We'll I got it to work.
This will put the free shipping image on the featured products page, products page, and the detailed product page.
In the product.tpl put this code where you want the image to be:
{* Free Shipping Image start *}
<br />
<br />
{if $product.free_shipping eq "Y"}
<img src="{$ImagesDir}/promo_free_shipping.gif" alt="Free Shipping" />{/if}
{* Free Shipping Image End *}
In the products_t.tpl put the following code where you would like the image.
{* Free Shipping Image Mod Begin *}
<br />
{if $products[product].free_shipping eq 'Y'}
<img src="{$ImagesDir}/free_shipping.gif" alt="Free Shipping" /{/if}
{* Free Shipping Mod End *}
Must be pasted in this format, will not work if on single line.