Clyde;
I found where in the 2 template files the url is passed to the picture and although my php is crude at best managed to comment out the url from being passed.

tpl_testimonials_manager_default.php
tpl_testimonials_manager_all_testimonials_default.php

I did it like this...

PHP Code:
<p id="testimonialImage">
<?php /* echo  '<a href="' . $page_check->fields[testimonials_url] . '" target="_blank">' . zen_image($testimonials_image). '</a>'; */ ?>
<?php echo  '' . zen_image($testimonials_image). '</a>'; ?>
</p>
One thing I noticed is that if there is no URL supplied either in the submission or edited in on the admin side then the code still inserts "http:///" as a link for the picture. Might consider adding a statement for it to check for a url and if none exists then not to create the link.

Also, thanks for the image info. If I'd have opened my eyes I might have seen it slap me in the face!