if you want to link to a local file as the image; use the 'file' protocol explicitly:
maybe those (\) should be the other way round; so if it doesn't work like that; try:
Also, check out: http://en.wikipedia.org/wiki/File:_URL

It loads without in IE because IE perhaps 'expects' windows/DOS paths.. It's not a correct URL though; because unless an URL is relative or root-relative; it has to have a protocol specified.

Putting an url like this src="/webroot/images/logo.gif" will work; but it's deceptive because it's root-relative to a local drive; wheras on the web; it'll be root relative to a 'home' or 'My Documents' folder (depending on the server OS, and may be different); with a document root folder inside.

That is; if/when you put your page online; it's likely that the document root folder will be at the level of 'webroot', so your url will end up "/images/logo.gif". On the server; the root-absolute path "/images" may end up pointing to a folder like; "/home/sam1/htdocs/images" (if you're on a linux server running apache); and that might be accessible from the web as : "http://www.sam1.com/images". However; the URL: "file:///c:\anything" is only accessible on your computer.

You can get around that by making ALL links relative (i.e: if your page is in a folder "C:\webroot\stuff\index.html"; and the image is in the folder "C:\webroot\images\logo.gif"; make the src="../images/logo.gif") but; that can get reaaaally difficult to manage. Or, upload your images to where you want them to be on the web, and use an HTTP protocol url i.e. "http://www.sam1.com/images/logo.gif". If you don't do something like that; and you make everything absolute with reference to your filesystem; you'll have to go and change all your links when you come to upload your site to the server.