Okay I got it.

What I did was upload it via FTP initially (after it was suggested that I do so). Then I tried using the file manager. It actually said this time that the upload was complete. Then it refreshed the file manager and the photo appeared in the 'misc' folder.

I used the whole URL at first and it didn't work, then I just trimmed it down to /images/misc/'filename' and it worked.

This is my first vB site and It's been up for only two weeks now. Never had to do this before - I'm definitely at the very beginning of the learning curve.

Thanks for the help everyone. Dunno if I did it right but it's up now. I at least have an idea with where to look for things and where to go to troubleshoot. Having absolutely no idea in the beginning sucks cuz you don't know where to start. Thankfully I'm somewhat "getting it" a little bit I think. :)