Permalink Problem

My wordpress installation is in one folder and my index file is in the main folder.

so it goes:
domain.com/index.php
domain.com/wordpress(wordpress installation)

When I update my permalinks structure and use:
<img src=”<?php bloginfo(‘template_url’); ?>/images/my-pic.jpg” alt=”” />

I get this img url:
http://www.domain.com/atlanta-under-deck-ceiling/wordpress/wp-content/themes/final/images/leftCoupons.gif

It Should Be:
http://www.domain.com/wordpress/wp-content/themes/final/images/leftCoupons.gif

One other issue: when I set up the permalinks I simply use the /%postname%/.

However, the permalink setting keeps adding the word “Atlanta” in the URL. I know that can be done through the “Category Base” in the permalinks settings, however mine is empty and I have never used it.

These issues are related to pages and posts.

Any suggestions?