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I know the code I'm using works as it is powering an active site. I've tried linking to it with an include statement and pasting it straight into the top of the sidebar.php file. Also I've checked that the images I'm using exist on the remote server (and in the right folders).
Any ideas will be helpful.
Did you get to the bottom of this issue?
In my (limited) experience of Wordpress things can get funny if you specify relative paths when there are a few plugins using the image. I had an SEO tool that likes absolute links, and it sent a folder of images walkabout. That was a while back now mind.