Database images now displaying correctly so the local site now mimics the remote site.
Now ready to try the update for inline editing on the testing server by following the 3 step process in your tutorial.
1. I presume its the localhost path in step 2?
2. Can the include file reference in step 3 be added to the head area for all the site pages by adding it to the site template and updating all pages or must it only be added manually to those pages that contain PowerCMS content?