Giving the CSS of
background #FFFFFF url('images/newbackground.gif');
is just giving an example based on basic CSS. Be careful when copying the suggestions made in the book because you missed an important colon after background. It should be
background: #FFFFFF url('images/newbackground.gif');
Also, you need to make sure the URL part of the CSS is ...
Normally, WordPress stores all your images and other media files in the /wp-content/uploads/ folder. To keep it structured, all files are stored in folders organized by year and month.
The problem you will run into with reorganizing them is that links to the files in posts and pages will not update if you are simply moving stuff around the server. First, you ...