anything that is appended to the URL as a variable (ie this.php?var=val) is a GET variable. You can have either POST variables that come from a form with the mentod POST, or you can have GET variables which will be appended to the URL.
If your globals are on, which most noobs like cos it's easier, then you can use the above example of a URL and simply type echo $var in the page, and it will print "val". however, this isnt good practice - it can lead to your variables popping up and being overwritten when that's not what you want. So most people will turn global variables off, and when you do that, the way to access your POST or GET variables is through $POST['variable name'] and $GET['variable name'].
So in this case you should try using $_GET['image'] and see if that solves anything.
On the two variables thing, i'd say (trying not to sound harsh) but you've split the string in the most ridiculous way. If you split it as i suggested (directory & file) then you can easily recombine them in your script, or do something like set the directory = $directory and then open $file or whatever. But to split the filename just seems a bit odd...