Dooblebee, Nope. You don't need to modify any files. It should work just fine. Sometimes, a little trick with IH is to uninstall it (don't delete your files, just click the uninstall IH link), clear the bmz_cache, then reinstall.
The images you are uploading with your products.........are you uploading in the "create new product" area, or are you leaving that blank and uploading your images directly to IH?