RE: Images uploading to admin/images not images/

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http://forums.oscommerce.com/viewtopic.php?p=228700#228700
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Well, your define('DIR_FS_CATALOG', ''); // absolute path required is empty.
try filling in the path between the '' like '/' because:
this line:
define('DIR_FS_CATALOG_IMAGES', DIR_FS_CATALOG . 'images/');
points to DIR_FS_CATALOG . 'images/'

I'm guessing this will solve your problem.

Hope this helps.
Emmett