I right click the image and choose view image to have it actually open the image in the window showing the path it is getting it from

I think you can safely remove the images you have in the large and medium folders since ih does not use them, it only uses the ones in the images and images/subfolders

I know it is frustrating when trying to find out why the items do not work like we think they should -- when we install them. been there and done that and still do that at times.