Linking to images on my server

I have images on my server that I would like to embed in widgets or posts.

1.) Is it a better idea to use a full address to one of these images, such as, <img src=”MyDomain.com/wp-content/images/photo.jpg” width=”200″ height=”75″ alt=”photo” />

OR to do this some other way?

2.) I am just starting my blog so I want to start off right. I currently set up a folder called “images” inside my “wp-content” folder for all images in my widgets and posts.

So: http://www.MyDomain.com/wp-content/images/photo.jpg

Is this a good directory structure, or should I do it some other way?

Thanks.