Adam,
I just wanted to thank you for taking the time out to help us with this. Murry and I are far from programmers and sometimes we are challenged with the simple things.
I would also like to add one other way we found that worked. I placed this at the end of:
LobbyInfo
lobby = (LobbyInfo)e.Item.DataItem;
Image image = e.Item.FindControl("Image1") as Image;
image.ImageUrl = "/community/chat/images/" + lobby.Lobby.LobbyId.ToString() + ".jpg";
Then like Adam said Then rename your image accordingly. like 1.jpg 2.jpg for the lobbyid you have.. That was the part i did not understand.
Thanks Again, Jay