I have figured out that the host database is only storing a reference to the image file. Now I need to know how to make the FMP file suck the images into the container field based on the references. Is this possible?
Check your documentation on Web Publishing. There's a specific folder where you must place all referenced images in order for them to be visible to web users. Of course, if you are moving images, you'll need to either re-insert each from the new location or use a tool such as Replace Field Contents to update their file paths to point to the new location.