Hello RTs!!! I've ran across this problem with about half of my sites. DreamWeaver adds "../" in front of the images folder path "../images/picture.jpg" When I upload the files and add the code, in this sites case, the image doesn't show up. So I have to manually delete the "../" in front of the code and then it disappears within DreamWeaver but shows up on the site. It's a little frustrating and I've never asked about it I've just dealt with it. Today I decided to find out why this is....
This is really an issue with your DW configuration of this site. Maybe you should seek for the answer in some DW support forum but in general, you will have to configure root path in DW correctly