OH MY GOD... I did it.. finally after three days... thanks
balinor and everyone else that helped....
getting that image in the welcome area what the ball buster.. but I just followed this -
"- When calling images, be sure to use Smarty. Upload all of your graphic images (not the product images, they go elsewhere) into the skin1/images directory and call them using this format:
<img src="{$ImagesDir}/imagename.jpg">"