It's because you've made an absolutely classic mistake when referencing your pictures. To quote from your code:
<IMG SRC="file:///C|/Documents%20and%20Settings/Alan%20lancaster/My%20Documents/perfection/picts/fadedown.jpg" HEIGHT="250" WIDTH="60" border="0" alt="image">
I don't have access to your hard drive, which is why the images don't show. In fact, nobody other than you has access...
When you create the file in future make sure all the images are in the same directory on your hard drive (or a sub directory) and then when you tell dreamweaver etc to insert them it will probably give you a relative link. The other alternative is to open the file in notepad and change the lines that look like the one above to:
<IMG SRC="fadedown.jpg" HEIGHT="250" WIDTH="60" border="0" alt="image">
assuming the images are in the same directory as the folder.