OK, so it does do relative pathing, but the pathing is relative to your website root. The directory that the viewer is looking for by default is:
<web root>\aspnet_client\system_web\2_0_50727\CrystalReportWebFormViewer3\Images
Assuming you built the web form with .NET 2.0.50727, etc. What you said sounds like a combination of the two. I just tested with my implementation and placing the following: "/reports/Fore-Pipe-Q1/Images/ToolBar/" allowed it to work when I had placed the Images folder in the same folder as the report resided (the report is at <web root>/reports/Fore-Pipe-Q1/Fore-Pipe-Q1.rpt). Make sure that the path you place in the properties is relative to the web root. If all else fails, create the path shown above as the default or place a virtual directory link to the appropriate place in the system files. For instance, make the following directory:
<web root>\aspnet_client\system_web\2_0_50727\CrystalReportWebFormViewer3\Images
and put your two image folders in there. It should work using the properties though so long as you place your images somewhere within the website and provide a path relative to the web root.
Pont