I have edited your code quite a bit. It's now very dynamic.
You will have to edit this code (keeping it's existing functionality) to my requests.
1. On the fly image re size. * I would like to grab the bottom right corner and re size the image. (all the time keeping the ratio)
2. Moving a selected image with either the mouse or arrow keys.
3. Ability to move any image up in front of another.
As per our agreed $30 amount.