Yeah, I've used the method creating a special easy to use folder- really a great solution as it creates a standard repository for all to drop their images to and others to mine as needed. Unfortunately, this always led to the other problem of changed folder locations or drive letters, also mentioned. SO- the solution to drop an image file into the local DWG folder solved the connection problem but created the additional problem of "unnecessarily" duplicated files- just ask the boss! So we've lived long term with both up to this point because the alternate solution of embedding an OLE object worked, but it had to be converted to a BMP file first, and ACAD used the method of converting pixels to individual "grouped " solids which GREATLY increased file size, weight of system resources, etc, and slowed everything WAY DOWN !
Thanks for the suggestions ! I'm just returning to ACAD as my primary tool for this next project. We've been using it as a companion, and in some ways primary driver, to another 3D application, and they worked well together. Its just that when you couple some of the still existing rough edges with ACAD (albeit a fine, well matured product) with the kludges of other less mature systems, you try to look for solutions that tend to minimize workarounds if possible.
Thanks again for the input !