First and foremost: I can read the instructions. And comprehend. Just wanted to clear that up. Also, I do know what a relative path is.

I have tried to insert a new image at the top of Minical in just about every way possible, as long as that method follows the conventions in the instructions. No dice.

Anyone have suggestions? Is this a bug or is my dyslexia kicking up again?

I just wrestled with this issue today. Here is how I solved my problem... be warned this is probably not the easiest way, but nothing else I tried worked...
I sized some pics to 138x130 pixels and put them in a folder named "images1". I then uploaded my folder to the XOOPS directory folder that contains 'modules', 'kernel', 'cache',etc.( I assume your XOOPS root) Now I entered images1 for 'minical images" field (click agendax>admin>minical image). Hope this helps.
If any one has an easier way please share!

i have exactly the same problem
it's not working
i tried your advise by making a new folder too
even that didn't work
i chmodded it to 777 ... still not
HELP !!!
i even lost all my data while updating, no warning at all in the readme

um I changed the image in my minical block by merely creating an image the same size and renaming to agendax_slogo.png

Ofcourse you need to make the image a png file.
Then you merely upload it into your agenda x folder and presto - image change.

For the record: Agenda X, DOES NOT suck!
Dont give people bad advice because you cant figure it out.
It's a pretty damn good mod, I have it installed on 3 sites.

so where can you find it that that minical image has to be .png ? didn't see that
i'm not the only one with the problem !
i solved it now, by using that random script... 6 random JPG images btw

i still have a problem with the upcoming events block, which is not showing up (again no problem with agenda-x 1)
and i'm getting these php errors, which is repeated 'bout a hundred times. i guess it has something to do with that block.

Notice [PHP]: Undefined offset: 0 in file modules/agendax/minical.inc.php line 149


oh and there was no warning in the readme (although i should have figured it out myself) that when you want to update from 1 to 2, you're losing ALL your events (coz of the different database structure). there should at least be a warning for dummies (like me)