There are 2 ways to do this:

#1) When your image tag looks like this: <img src="file:///C|/Documents and Settings/The Master/Desktop/atn.gif"> You can always go to Edit > Find and Replace or CNTR + F, and change file:///C|/Documents and Settings/The Master/Desktop/ to the web directory your images are in, such as web/images/, images/, ect.

This step will only work effectively when all of your images are in one folder.

#2) This is what I do.

I create the index.htm in the same folder as my images folder. That means that my index.htm and images are in the same folder/ path. This way, when you insert images, it should read <img src="images/whatever.gif">. Just upload the contents in the folder into your server and it should work. Make sure that your image folder and the html file you are editing with Dreamweaver are in the same path/folder such as My Documents for example.

Hope this makes sense! :D