Where do I store images I want to use as part of my Windows SharePoint Services site?
A. By default, SharePoint looks in the C:\program files\common files\microsoft shared\web server extensions\60\template\images folder to locate images. You can confirm this location by looking at the Microsoft Management Console (MMC) Internet Information Services (IIS) Manager snap-in. Expand the site, Layouts, Images. Right-click Images and select Properties. Open the Virtual Directory tab and confirm the "Local path". You can now copy images to this folder or create a subfolder for your custom images.