From my clients IS Dept:
UNC path is the only method of doing it since we are running load balanced. Because of this, we NEED to upload to a
remote folder or the file uploaded will only hit the server the user is on at that moment. The solution sent is creating a virtual directory which is not going to help since we cannot create a virtual on the production server that points to \\vserver. That is not permitted in IIS (moreso, no one would ever have a conceivable reason to do it, so I think it is just unsupported).
I'm a programmer and the server side stuff is peripheral to my expertise. I understand what my client's IS dept saying and my moderate knowledge agrees that the link Adam sent me to wouldn't do the trick. In looking at that solution in the first place, the logic didn't add up to me which is why I asked someone else -- to be sure.
I'm giving up on this and am going to write my own Image Uploader. I'm pretty sure I can still use the Image Gallery as long as I strip the file uploading and modifying (i.e. deleting) and make it readonly.
I'm posting this only for the benefit of anyone else in my situation - the noticable drought of feedback in this areana made it seem that I was creating the wheel.