This explains why it isn't working I believe.
http://www.barbelith.com/cgi-bin/wik...es&revision=20
Getting Images On The Web
(fridgemagnet) If you have an image on your own computer and you want to post it on the board - basically, you can't. You need to get it up on the web first. For this you will need either an image host, or some webspace of your own. Most ISPs provide you with a certain amount of webspace. Since these facilities vary, your best bet is to look at your ISP's help pages to find out how to get files up on the web. Once you've done that and you can see the image in your browser, copy its URL as above into the IMG tag.
There are also free image hosts out there, some of which are listed on FreeImageHostingServices. Sites like Geocities don't normally let you link, as mentioned above, unless you use...
The Geocities Image Trick
(may work on other free hosts like Tripod too): If you have your own Geocities site and you want to link to images thereon, just change the extension of the file, so that rather than being image.jpg (or whatever) it is now image.txt (or something else that's not jpg, gif, png, or one of the other image extensions). Then you can link to it with the methods above, because Geocities blocks linking based on the extension not the file type. Won't work for linking to images on someone else's Geocities site, obviously.