AWESOME! It worked perfect....Man I need to do more work with CSS and Div's
Here is the final code:
<div id="shadowbox_images">
{if $images ne ""}
{section name=image loop=$images}
{if $images[image].avail eq "Y"}
{if $images[image].tmbn_url}
<div class="shadowboxlinks"><a rel="shadowbox[images]" href="{$images[image].tmbn_url}" title="{$images[image].alt|escape}"><img src="{$images[image].tmbn_url}" width=50 height=50/>{$images[image].alt|escape}{if $images[image].alt|escape eq ""}{/if}
</a></div>
{else}
<div class="shadowboxlinks"><a rel="shadowbox[images]" href="{$xcart_web_dir}/image.php?id={$images[image].imageid}&type=D" title="{$images[image].alt|escape}"><img src="{$images[image].tmbn_url}" width=50 height=50/>{$images[image].alt|escape}{if $images[image].alt|escape eq ""}{/if}</a></div>
{/if}
{/if}
{/section}
{/if}
</div>