Oddball, you cannot like to pictures direct to your computer - you need to upload it onto the web somewhere and link from there.
Sometimes ISP's will give you some webspace with your account so you could check if you've some upload it there, otherwise check out Boomerweb for 2mb of web storage - best of all it's free
Oh, and by the way, you need to add a / to your last IMG tag to make it work when you do it... so it ends /IMG