Hi Coke,
Thank you soooooo much for your help! Everything works now. For some reason, when WordPress unzipped & installed the theme, it did not create an image folder. The theme worked properly on the free website because when I had installed the theme,I uploaded it through Filezilla. And to do that, the theme had to be unzipped first and an image folder was created that time.
Lesson learn: do not assume things that are done automatically by the WordPress program will get done properly. Hope this post will be useful to anyone else that may have the same problem.