Hi cotmyey,
Thanks for taking the time to post the requested information. I have verified the issue you are reporting within your account and have forwarded this example to our developers for further investigation. I suspect this behavior is indicative of a bug that will need to be addressed with a future release.
In the mean time, I suppose it would be a good idea to refrain from deleting images solely based on what is displayed in the "Listings" column on your "Manage Images" page. The "Listings" problem probably works properly for normal auction and fixed price items, but further investigation will be required before we know for sure.
Any additional questions or concerns? Please file a support request using the appropriate link on our help page:
http://www.auctiva.com/free-auction-software-help/help.aspx-Mike