Hi Poetchaser,
I see a lot of your html files are located in a default_files directory and some images are at the root folder while others are in the default_files folder. Try to get all your html files to be at the root (like the default.htm) and put all graphics in a images folder. Do this via Publisher, if possible. Moving the files yourself in the website folder may result in broken links.
Everything shows up fine on my end. I can see all your graphics and the navigation works.
I would highly recommend considering using the Office Live Web Design tool. You'll find it a whole lot easier to update your site using the online tool versus Publisher. However, I can understand why you may be using a 3rd Party Design tool if for instance, you're on a dialup connection and the Office Live Web Design tool doesn't work well on dialup.
If that's the case, you might want to invest into purchasing FrontPage. Publisher can do the job but might require additional work to update and publish your site to Office Live.
Good luck and fee free to come back to the forums for any additional advice.
Norris