Just put your images under /htdocs/images instead of /images. All your links should be relative, so they will still work.
In Dreamweaver, set up your site as normal. Create an /htdocs folder and an /images folder. Using the folder view in DW, move all your files into the /htdocs folder. DW should prompt you to update site links; let it do so. Then, select all the images in your (now) /htdocs/images folder and move them to your /images folder. DW should again prompte you to update site links.
Sorry, I didn't clarify that he wants the html files in the htdocs folder, while the images are still in their image folder, etc. It's when I move the html files that it messes up the links.
What he wants is not the common industry practice. It does not matter what folders your images are in and, frankly, if you have your images in /htdocs/images rather than /images he shouldn't care one bit. If he does, then you need a new Web host. With most hosts, you put your files in the top folder (that you have) and your images are in a folder under that (just as Fireworks exports and Dreamweaver expects).
If you still want to use this host, then if you use the file management tool in Dreamweaver to move your files, Dreamweaver will ask if you want to update your links. If you click yes, then when you move files, your links will be correctly translated. You must have relative links, however, not absolute.
I understand what you are saying and yes, I agree, I do need a new web host, as he has been difficult to deal with. However, for this particular site, I am required to use him because that is what my client wants.
That aside, I think I have figured it out. When Dreamweaver asked to update my links, I clicked yes, but it wasn't updating them correctly, but I think I figured out how to solve the issue.
Thank you for your help.