I have the same problem on multiple sites.  I use site root-based links (ex., /eller_styles.css or /includes/nav.htm), but while the paths are just fine -- and show up just fine in design mode in CS3 -- they are not working for images or style sheets in Dreamweaver CS4 either for me or for one of my clients.  This is clearly a CS4 problem.  Is there a way to reset site parameters or paths to fix?  I've had no luck so far and the problem has prompted me to stop using CS4 and return to CS3.  But my client doesn't have that opportunity.

I did find this possible fix, but haven't had the chance to try it yet (and it doesn't seem to address images, which likewise aren't rendering in design view but the links are just fine:

http://forums.adobe.com/thread/454034

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******************* PROBLEM FIXED  *********************************************

This was certainly the oddest problem I have encountered although fairly easy to find a fix for. It only took me 6 hours to track it down. HA, Thanks Microsoft.

This does appear to be a CS4 or Dreamweaver issue if you have not installed a site on your local machine before this. Who would have thought that IIS would not work entirely on install. Well MS is beginning to install less features upon install and of course those are the features you need most. Why on earth would you need CSS files to work.

The problem is that Dreamwever does not have control over what MS and IIS does. The reference above referring to the check mark, Preview using temporary files is to Adobes credit, in allowing us to see the final result even if we dont trust what we see. Normally in the past, if you yourself have not made mistake in the link or code on your web page, it has been the application messing up the path in one way or another. I have seen funky things even though you have all the settings correct since ID4. (DW Inter Dev 4.) This is one time where it is not the applications fault.

IIS does not instal the feature that allows you to use CSS style sheets.

There is a fix both for Vista and Server 2008. I can not find the page again that tells of server 2008 but the link below states the fix for Vista.

Basically you have to go to your control panel,

Programs and Features

on the right click on Turn Windows Features on or off..... wait for it to fill

expand "Internet Information Services"

expand "World Wide WEb Services"

expand "Common Http Features"

Put a check mark in Static content.

Press ok and it will instal the capability for Cascading Style sheets to work on your local machine for your browsers.

Ok I can not find my original MSDN Microsoft site but I can post this link here.

http://gurustop.net/blog/2009/10/12/funny-problem-windows-7-iis-7-5-im ages-css-not-showing/

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Design view in DW shows the CSS styles.

with the temp files checked for browse in (tested with firefox and IE)

HTM did not show the css styles

ASP did show the css styles.

With the temp files unchecked

IIS shows a blank page for HTM

IIS shows the text but no CSS Style settings.

Near the top it says a fix for this is to install a web server, as noted I have IIS on a Vista Machine.

This is on a Vista Machine and DW CS4.

Going to the site via IE using my local IIS server I do not get the CSS viewable.

Since making this post I have CS4 installed on an XP machine and the page previews and shows properly in XP local IIS. There is no problem at all in my pages at all in firefox and ie.I think this may be a Microsoft problem and we see this as a result in CS4 browse in feature. If IE does not show the page properly outside of DW I think DW problem is just that IIS is not working properly with any browser.

>However, for some reason I can only see the associated files if they have relative links

First, to clarify some terminolgy - when you add slash to the path, it is still a relative link; it's a site root relative link as opposed to document relative. These are  not absolute links.

Where is your styles.css located in your site? Where is the document you are working on located?

Also, it's usually best to start a new thread rather than reviving one that's 4 years old.

Have you tried clearing the site cache? I would think that deleting and recreating the site would effectively do that, but try clearing it anyway.

http://forums.adobe.com/thread/494811