It not correct that you are required to move images to the template images folder....

Here is what needs to happen

Image links must be to hhtps:// or use relative links.

So for your header

change http://www.chivasskincare.com/images/chivas_logo1.jpg

to images/chivas_logo1.jpg

Another possible issue

Code:
<script language="javascript" type="text/javascript"><!--
function session_win() {
  window.open("http://www.chivasskincare.com/index.php?main_page=info_shopping_cart","info_shopping_cart","height=460,width=430,toolbar=no,statusbar=no,scrollbars=yes").focus();
}
//--></script>
~Melanie