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verify your system has this directory:
~magneto home directory ~/skin/frontend/default/modern/images
If not, you have a permissions problem.
The best thing to do is see which user your web server is running as and do a chown -R -user- /path/to/magneto home folder and a chgrp -R -user- /same/path
set the magneto home folder to 777 while installing extensions via connect also helps
Also - you need to configure each page to show the “modern” theme instead of default
Go to CMS - Manage Pages | Click on Each page then -> Custom Design -> Custom Theme Dropdown -> Modern
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