Matt, thanks for the quick reply.
Yes, cleared image cache in touch, quit touch and even cycled off/on device.
When I use the "lantern" icon, it works so it must be something with my naming or the actual image. I thought I read in one of the forums about the image size or maybe the background causing a problem.
Here are the file names:
Indigo 7.4/IndigoWebServer/images/controls/devices/LCARS HALL.PNG
Indigo 7.4/IndigoWebServer/images/controls/devices/LCARS HALL+ON.PNG