I've used CC for years, and still have not figured out why I can no longer set the default image location for my images. I've tried using Projects, which I do not like as it creates more repetitive tasks and when you forget to add each file to the project, it creates problems, Even when I create a whole new project, CC does not recognize the fact that I'm working in default directory and images are only one folder away! But I tried to create a new web site, and even though I have to go in and change all the default working folders, it still didn't work....created a new project and entered the correct file paths, I insert an image and it always lists out the complete path from <img src="file://C:/Documents and Settings/Tim/My Documents/Web Sites/ which allows the images to appear while I'm working, but is not the way I want it set up. I want the images to appear when they are linked from the directory I'm working in to /images/filename. That is all I need. When I upload my HTML file the paths are not like the ones on my directory.
How to I get Coffeecup to insert the image from my sub-directory instead of tracing it back from My Document folder? This should be a very simple solution and I have fought it during the last 5 web designs and when editing old ones.

Tim you need to put your images in a folder called "images" in the same folder where all your other files for that project are saved. If you put them anywhere else you will get a complicated file path that won't work when you upload to your server.

Its best to add your image to the right folder before you add it to your page in HTML Editor and that way the file path is correct from the start.

In addition to what Tassietiger says, it's a good practice, as soon as you create a new file/project, save it with a name. If you insert images before you have saved your project, that's when you get the full local path. The programme doesn't know how to link the images properly if the project hasn't got a name and a location first.

Another thing that I find very useful, especially for backup reasons, is to have all your work saved in My documents. I always create a folder that I call 'web' in the Documents folder, and in the Web folder I have subfolders named after the various sites or projects I have. Inside those again I make folders like 'images', 'css' or whatever I need, so that I can upload it to the server exactly as I have it locally.