General Images are missing from templete

Maybe this will help.
The "psd file" is the design created of what the website will look like.
It was sliced and diced up only to create the graphics which are found in the "images" directory, which by the way has only 2 files with text, (logo.gif and menu.gif).
You can edit these files that are in the "images" directory and save them with the same name in that directory as they are referenced in the "css file" or if you know how edit them using the psd file, saving them in the "images directory" with the same name.

The "css file" is the layout of the template.
The "index.html" file is where you change the typed text, other graphics, links, JavaScript, etc you want the browser to interpret and display on the screen.

You need a Graphics editor for the graphics files
and
A Text Editor for the html and css files.

For usability you need to retain the same file names and locations. Just look at the files that came with the template and review the code and you will see how "css templates work".