Tammy,
We are trying to create a networked photo database and are having the same problem. We've got a Filemaker server computer, then we've got a Mac office server, where the photos are residing on a shared drive.
Our problem resembles yours, but is also a little different. Basically, one computer may react differently to different users. User A may log-in and be able to "see" the referenced picture files. User B may log in and not be able to see anything.
Have you clicked on the thumbnail view screen yet? The strange thing is that when we click on this, we can see all the pics, so FM must know where they are, right?
Any help or assistance with this would be greatly appreciated. We're having an IT volunteer come in today to look at our situation, so if he has any insight/solutions, I'll be sure to post and let you know.
Good luck
nadia