I have created a new file system web site in VS 2005.
I added an App_LocalResources folder to the project. I threw an images folder in there which has a folder in it called background, which has a file called construction_back2_40.jpg.
App_LocalResources/images/background/construction_back2_40.jpg
I dragged that image onto the page and VS created an <img> tag. Saved. Viewed the page in browser. Nothing comes up. Published the website. Viewed the site. Nothing comes up.
Deleted the <img> tag and instead added a background attribute to the <body> tag.
Here is the simple page as it looks right now, everything else was auto-generated with the exception of the style attribute.
<%@ Page Language="C#" AutoEventWireup="true"Go to the complete details ...