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I was thinking of a solution for a problem I see with a lot of html pages that load many files from a server instead of loading one large file like a zip file and then extract its contents to use...

When I tried loading an HTML file from a server with <IMG src=file://... the browser gave me a security error

Have you tried testing this part of the project by manually creating the HTML and positioning the image file to see if the browser will get the image from a local file.
I think you need to figure...