Re: breadcrump images
It needs to be located in a folder. Placing all of the files in the root of your domain with vBulletin would cause problems with the files conflicting.
What do you have set for your 'Homepage Name', 'Homepage URL', 'Forum Name', and 'Forum URL' options?
If you're talking about showing that users are browsing the gallery in your Who's Online page, there are instructions for this in the hacks forum.