I cant believe how simple this could have been, anyways,

For those of you who are dummies like me, ff these steps:

1. Log into your Joomla Admin Area.
2. Hover over "Content"
3. CoGoto "Media Manager"
4. Type in "slides" in the empty text box field on the right hand side of the existing image path eg: /home/karathjg/public_html/images.
5. Click on the Create Folder button just below that.
6. Upload your images to the "slides" folder you just created.
7. Goto: the ARI Image Slide Module, in Modules.
8. At the "Load jQuery method" tab, select "local copy"
9. At the "Image path" section (just under "Scan subfolders") add path "images/slides"

Done.
I`m angry and happy at the same time cos this took like 2 weeks to sort out...just FYI...don`t reply