If the image file is in the images folder of your theme, you need to use something like:
<img src="<?php bloginfo('template_directory'); ?>/images/calendar-icon.png" width="160" height="160" alt="Calendar of Events" />
Thanks – I got it now. I thought template_directory was a place holder for the themes folder. Also – I needed to add the advanced text widget plugin.
All good now though!
CHeers
mr