to the upper side of page.tpl.php, the image has proper permissions but does not show up. No surprise though since the image is hyperlinked as
I have also tried defining a div class="flags" at the top of page.tpl.php and then introduce the image as the div's background-image url('images/flags.png'). No success either.
Direct insertion of static images used to work on my other theme. So got really perplexed and appreciate your help.