Sorry...yea, I should have posted up how I fixed the errors.
First...one of my issues was that I had upgraded my Classifieds version...and with that came an error on my part. When I was transcribing the paths, etc...I screwed up the path to my data directory. Actually, I just left off the trailing "/" at the end of data so just went into my config-int.php of my Classifieds and edited line #23 $data_dir and added the ending "/".
Putting the "/" at the end of data directory cured the errors I was getting when the hack or inc_ads.php was trying to pull images.
Next up....
Second one I was having was the default directory that the plugin was pointing to for my inc_ads.php.
The default was set to: include('../classifieds/inc_ads.php');
Which didn't work for me because my inc.ads.php file was in my Classifieds directory. So, just edited the path to:
include('./classifieds/inc_ads.php');
So, vice ../classifieds I changed it to ./classifieds
Hopefully all of this made sense to you and the others who may be experiencing similar issues.
Thanks for this hack.