In order to help you do this:
1. open with your browser the image
if you can't probably the image is damage...
2. open the directory of the webserver (as Sam said) http://127.0.0.1/ads/
if you can't you have a configuration problem???
3. open the image directly http://127.0.0.1/ads/yourimage.gif
if you can't you have a configuration problem???
tell us what happen!