When adding images to Visual Site Designer, it is very important to not include spaces in your image name. When an image that includes spaces is loaded by the browser, the spaces in the name will be converted to %20, so an image entitled "Picture of My Kids.gif" will instead read as "Picture%20of%20My%20Kids.gif". This will then cause your browser to fail to render the image. To fix this issue, you will need to first delete the image inside of Visual Site Designer and then rename the image without any spaces. We recommend you use dashes or hyphens to put spaces between words, so naming your image something like "Picture-of-My-Kids.gif" is both browser-safe and legible. Now you can add your image to VSD again and re-upload.
Why this happens: Browsers find locations for files using a line of information called a URL, which cannot support spaces or certain special characters. Instead, these characters are converted to a code which follows the format of a percent sign (%) followed by a two-digit number. The URL code for a space is %20, so when a browser is told to load a file that has spaces in the name, those spaces are converted to %20. This is why it is best to avoid the use of spaces in file names that you intend to use on the web.