One of 2 ways Brett,
In RSD if you select an image and/or place holder then click on 'Design' tab and open the resource folder ... you'll see a directory on the left and the images on the right. I created my own folders for images. I have not uploaded yet so I'm not sure how it will look on the net.
The second way would be to create your images folder on your server, upload your images, then in RSD instead of selecting 'Local Image' you would select 'Online Image' and link to it.
Both seem to work well for me.
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