[Logician]

first replace line:
$image = fopen ("http://www.arcticnightfall.com/berserk/pix/episode_01/image00$number.jpg", "r");

with :

$image = fopen ("http://www.arcticnightfall.com/berserk/pix/episode_01/image0010.jpg", "r");

and see if you get rid of the error. If yes, try one of these:

$image = fopen ("http://www.arcticnightfall.com/berserk/pix/episode_01/image00{$number}.jpg", "r");

or

$testvar="http://www.arcticnightfall.com/berserk/pix/episode_01/image00".$number.".jpg";
$image = fopen ($testvar, "r");

if replacing line above didnt help the error message, double check your filenames (caps!) and their existence..