I'm not really sure about Dreamweaver, but are your images saved to folders locally that mirror the online setup?
example -
Online you have ../public_html/images/artwork/artworkTM/cathyspooky.jpg (what i can make out from your image)
and on your computer you have ../some_folder/images/artwork/artworkTM/cathyspooky.jpg
Where in relation is the html file?
Online ../public_html/htmlfile.html
Offline ../some_folder/htmlfile.html <--where ../some_folder/ is the same as the some_folder in the images part.
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