Rename the 'your_free_shipping_image.gif' to your freeshipping image.
{if $product.free_shipping eq "Y"} <img src="{$ImagesDir}/
your_free_shipping_image.gif" border="0">{/if}
Upload your freeshipping image to your images folder and in product.tpl put the code where you want the freeshipping image to appear.
Use below code if you want to display the freeshipping image on the products page (products_t.tpl):
{if $products[product].free_shipping eq "Y"} <img src="{$ImagesDir}/
your_free_shipping_image.gif border="0">{/if}
Good luck!
