Since I am designing my site, I need to be able to work with files directly with CSS, not as Drupal pieces of content. So, I dug around a bit and the best thing to do is to put your images into someplace that will be easy to manage under the doc root of your site. Which in my case is the HTML directory. So i continued into that area, going into sites and created an images folder there. I need to keep the images in the sites folder because my upgrade proc for core removes everything but sites. so once i place the file there I can reference it in the css by its path. so for example, http://docresource.org/sites/images/filename.ext