Thanks Brandon, but that code didnt work either, I'm still getting the same effect, the pic holder only , nothing else, I made sure that the pic is in the same directory. As you say, my script will do some processing before displaying the pic.
As andre said( thanks for your comments) you can insert the pic really easy following the format:
$picture = "ttt.gif";
print("<img src=\"$picture\">\n");
but:
"print <img....." but this will force you to name the page .php3 (i'm trying to avoid this), if you need an image (e.g. a banner) display in every single page of your site, all your pages will be .php3, what means that all of them will be parsed by php.exe, even though you are trying to just displayed a small pic, this will slow down you server a lot, calling the .php file from your pic tag in your html will force the .php file and only the .php file to be parsed, so you are free to have all your web documents in plain .html format.
thanks guys for your help, hope someone else comes out with any other idea how to do this, thanks