I can't see why image handler isn't working.
But I do see that your paypal and google sidebox is messing up your site. You need to replace the html for that banner to be like this:
<img src="images/GOOGLE%20CHECKOUT.gif" alt="Google Checkout Accepted" title=" Google Checkout Accepted " height="88" width="92"><a href="#" onclick="javascript:window.open('https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/Marketing/popup/OLCWhatIsPayPal-outside','olcwhatispaypal','toolbar=no, location=no, directories=no, status=no, menubar=no, scrollbars=yes, resizable=yes, width=150, height=150');"><img src="https://www.paypal.com/en_US/i/bnr/vertical_solution_PPeCheck.gif" alt="Solution Graphics" border="0"></a>
(remove all the extra </div>'s and <td>'s and such.
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