Background image not showing and can't upload images in MM

[j-l-k]

I can't get an image to show as a background that IS seen when I created the page in DW. I saved it as I've done with other images, in the images folder on my root site (saved directly from Photoshop). I am able to upload other images saved that way to Articles.

Possilby the image is too large? Its 955 by 800 and that is the SAME size of the div with no other content or modules in it. I created a separate template for this page. (image size is around 60K)

In desparation, I tried to upload the image using the Media Mngr:

When I try to upload any image in the Media Mngr, I get this pop-up at bottom of screen:
Do you want to open or save Joomla.json (959 bytes) from localhost.
The options are:
OPEN (and if I click on that I get the screen: Windows cannot open this file...).
SAVE - then a msg: The joomla.json has been completed (but no image uploaded)

I am working in 2.5, using a template I created.

Maybe the image not being able to be seen on the site it has nothing to do with the media mngr, but, in any case, my media mngr is not working how its supposed to (watched Jan Kramer's lynda.com videos, as I am very new to Joomla)

I turned off the Restrict Uploads option in the Media Manager OPtions section.
My site is offline.

If anyone can help, would be very appreciated,
Jana

[j-l-k]

I didnt' get any replies to this and still would like to know why I can't add images thru the media manager. However, I "fixed" my current problem by a: creating another template for the page that I wanted a bkgrd image and b: am continuing to add images to my image folder directly from PS.