into which you should place all image files, using the 'import' option.
When in the images folder, click 'File' and then 'import'. A dialogue box will open, allowing you to browse to the folder on your hard drive where the images are stored.
Once you've done that, you can place images on the page in more than one way. You can use the insert option or, by opening the images folder you can simply drag the images across onto the page. FrontPage will automatically set up the links.
I notice that you've used upper case in your filenames by the way - it's better to use all lower-case, and remove the spaces - if you don't, you'll see %20 appearing all over the place.
You would also do better to create tables on your pages, and lay out the text and images that way.