New to XML need help

I’m new to xml so this is kind of a dumb question but after I download the file how do I go about putting my own images in a folder. What should the image folder be labeled? Is it root folder? And do I have to make all my images thumbnails? Basically I just need to know how to format the images folder after I download and if there are any xml label changes. Thankshttp://www.kirupa.com/forum/showthread.php?t=272301