Also in the code you use println which prints to the console output and will not be displayed in the applet or application window. Learn how to use text()  instead of println()

Applications created in Processing are designed to run within and operating systems and when you export as an application from Processing it will produce 3 versions for Windows/ Mac OS and Linux. These types of apps will not run from a web host (we use applets instead) although you could zip up the application and allow others to download it.

Thanks very much for your great replies guys, it's my first time trying to use an applet online :) I will try uploading the images, and learn to use text instead. Will reply with any updates, thanks :)

Update: I am having a problem with processing, when I click on expert it is not automatically adding them to the applet. I tried adding the images to the same folder where the other files are on the ftp, and it's still the same.

Well your applet appears to be working correctly for me now (perhaps your browser is caching an old version of your applet).

Yes it's working now in a different browser. So processing will transfer the images inside the jar file when I export, and I don't need to have them anywhere else, great :) If the are not in the data folder, and are in the root I guess it is not good, because that is how they were before.

To add to my previous post, there is a great plugin for processing too, on wordpress. You just write one line of code which links to the jar file and everything else is done automatically.