Yeah, I think you're right. I will dump the big echo statement, and then use the PHP tags whenever I need it (like in the example you pointed out).
As for the include, I forgot that the first time. But I went ahead and added the line:
include "image2.php";
to the beginning of the file image.php. Now when I load image.php it looks fine, but when I click on the submit button, I don't see anything but a blank page. When examining the code, to me it looks like image.php sets up the form, and then image2.php checks to see if the appropriate text was entered into the form field, however it's not working properly when I split this up into 2 files.
What does this line of code do:
<form method=post ACTION="index.php?action=do">
Is this how you set it up so that the file that processes the form is the same file that contains the original form?