Windows 7 Custom Backgrounds

I just reinstalled Arcanum after several years. I am using my laptop running windows 7. I have no trouble starting, running, saving, or loading the game, however, I can not for the life of me get any of my (or anyone else's) custom backgrounds to appear in the game.

If anyone can tell me how to remedy this or point me to where I can I would be MOST grateful.

My system specs are:

Windows 7 Professional
Service pack 1
Intel Core 2 Duo CPU T8300 @2.4GHz 2.4 GHZ
4.00 GB Ram
64-bit OS

Someone mentioned default or custom directory installs so just in case, the directory to my Arcanum folder is as follows:

C:/Sierrra/Arcanum/data

The rules and mes folders are both located in the data folder.