Ok. Ross. Son, you have missed the boat on the image linking lol.
Here let me try this again.
You have to have a picture uploaded on a website somewhere. The picture can not be simply stored on your computer.
When I gave you an example of
http://www.domainname.com/45-1650.jpg the word "domainname" would of course be the name of the domain, or website if you will, that the picture resides on.
For instance, if you had uploaded a picture named "balloon.jpg" to a website that you had on geocities.com and your username is rossbeckett2002, then the image patch you would use to make the picture would be:
http://www.geocities.com/rossbeckett2002/balloon.jpg
Before you go trying to make that one work, you have to have a website and a picture that you put there.
That was just an example.
Another example is the image of the Starbright Project logo at the top right hand side of this page. If you right click on the image and select "properties" you can see that the image path is
http://www.quantumleap-alsplace.com/img/starbrightproject/starbrightlogo_messageboard.jpg
This is because I uploaded an image named starbrightprojectlogo_messageboard.jpg to my website and put it in a folder called starbrightproject which is in another folder called img.
I would suggest you take a computer class of some sort that teaches basic website building or just visit any basic web building site using a search engine for tips and tricks.
Try it again. If you mess up, I'll edit your post to fix the issue until you get the hang of it.