Here are samples from the apache logs showing it is an apache problem (apparently)...
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Fri Jun 09 18:13:55 2006] [error] [client xx.xx.xx.xx] (13)Permission denied: access to /fooba/images/BackgroundImage.jpg denied, referer:
http://www.mydomain.com/
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What does the error number 13 mean? Like I said in the previous post -- The permissions are the same, including owner and group, as images that are shown. And they are in the same directory.