Many thanks Mercime. I changed the folder like you say (and as described here http://peekablog.net/2008/09/wordpress-images-upload-fixed/) and it worked.
🙂
Hey ukbloke28 and jberghem – thanks for your replies.
It looks like I just hadn’t inserted the code properly. A friend fixed it with this <li><a href="http://www.link.com"><img src="<?php bloginfo('template_url'); ?>/images/s1.png" alt="" /></a></li>
I’ll close this now. (And cheers for those widget tips).
I double-posted this in Troubleshooting because I figured I may have posted to the wrong thread here, due to lack of response. I would have deleted this one myself, but I don’t have that option.
Sorry to clutter the forum. Looks like no-one knows this fix…