Hi,
Where it has <IMG src="[IMAGE1_URL]" width="400" style="margin-bottom: 15px; border: solid 2px #eb1537;" /> in the code, replace the tag [IMAGE1_URL] with URL link to the hosted picture, e.g. "www.mypichost.com/myacct/picture.jpg" , or you use whatever substitute tag another provider might have in their system (need to check with them). Sounds like you need that first option for direct/hotlinked provider, like photobucket.
You'd need to do that for each tag. You'd also need to remove the <img .... /> tags for unused images for any direct listing (tagless) system type method. Auctiva's system automatically removes the unused code for unused pic tags.
Danno