Hello,
The custom code shown here:
http://www.shape5.com/demo/business_line/index.php/tutorials-menu-48/custom-code-for-this-designIs inserted into either the articles or you can set the module to HTML and insert this content directly into the module settings, rather than using articles. Entering the code using the HTML method is a little easier in my opinion, the article method just provides more dynamic updating.
If you are using the article method, you don't insert the images into the content, you use the Intro Image and "Images and Links" when editing the article. Also, make sure that the category that you have them set to is published and you've selected that same category in the module's backend.
Despite if you are using html or articles, you should also have the titles set to off. The titles are very custom to this design and defined in the custom html instead.