First, I downloaded the OSCommerce site and setup everything up properly as directed. I have a network of 4 PC's and I use only one for development reasons. Once the site was setup I was able to view it perfectly on my development PC. The settings I used when the php site was setup is as followsin the configure.php file..
?php
define('HTTP_SERVER', 'http://localhost');
define('HTTPS_SERVER', 'http://localhost');
define('ENABLE_SSL', false);
define('HTTP_COOKIE_DOMAIN', 'localhost');
define('HTTPS_COOKIE_DOMAIN', 'localhost');
define('HTTP_COOKIE_PATH', '/');
define('HTTPS_COOKIE_PATH', '/');
define('DIR_WS_HTTP_CATALOG', '/');
define('DIR_WS_HTTPS_CATALOG', '/');
define('DIR_WS_IMAGES', 'images/');
define('DIR_WS_ICONS', DIR_WS_IMAGES . 'icons/');
define('DIR_WS_INCLUDES', 'includes/');
define('DIR_WS_BOXES', DIR_WS_INCLUDES . 'boxes/');
define('DIR_WS_FUNCTIONS', DIR_WS_INCLUDES . 'functions/');
define('DIR_WS_CLASSES', DIR_WS_INCLUDES . 'classes/');
define('DIR_WS_MODULES', DIR_WS_INCLUDES . 'modules/');
define('DIR_WS_LANGUAGES', DIR_WS_INCLUDES . 'languages/');

define('DIR_WS_DOWNLOAD_PUBLIC', 'pub/');
define('DIR_FS_CATALOG', 'C:/www/htdocs/');
define('DIR_FS_DOWNLOAD', DIR_FS_CATALOG . 'download/');
define('DIR_FS_DOWNLOAD_PUBLIC', DIR_FS_CATALOG . 'pub/');

define('DB_SERVER', '127.0.0.1');
define('DB_SERVER_USERNAME', 'root');
define('DB_SERVER_PASSWORD', '');
define('DB_DATABASE', 'vanity');
define('USE_PCONNECT', 'false');
define('STORE_SESSIONS', 'mysql');

Now, when I view the site on my development PC it appears perfect with the images. When I view it on another network computer by starting a browser and entering the ip address of the development machine the pictures do not appear, however the site itself does. Like I said simple and probably missing the obvious. Thank you for your help.