Total newbie to XOOPS - lovin' it big time!

I've installed the theme I want and it is working perfectly. In the top header I want to include an applet instead of a static image. I've figured out how to call a flash file, but this isn't a flash file, it's embedded code.

<td width="530" height="80" background="<{$xoops_imageurl}>pagebg.jpg"><APPLET CODE="fade.class" WIDTH=530 HEIGHT=80>
<PARAM NAME="GENERAL" VALUE="12|7|000000|33|40|0|3|">
<PARAM NAME="IMAGES" VALUE="couragew.jpg|couragewb.jpg|blank.jpg|commitmentw.jp|commitmentwb.jpg|blank.jpg|confidencew.jpg|confidencewb.jpg|blank.jpg|creativityw.jpg|creativitywb.jpg|blank.jpg|">
<PARAM NAME="LINK" VALUE=" | | |">
<PARAM NAME="LOAD MESSAGE" VALUE="000000|FFFFFF|Loading...">
</APPLET></td>

I've gathered that I need some <{$xoops_imageurl}> type tags but each logical (to me anyway) place I try I get nothing. Without any tags, just as the code is above, theme.html works great in my preview browser, but when I try it through my XOOPS page it doesn't work. Developing locally using XSAS installer.

Update module template is turned on.

Any help is enourmously appreciated.

Dash

EDIT: Class Fade not found. It's in my themes/mytheme directory along with the theme.html file and the images that make it work. ???? Not sure where to put it or how to tell XOOPS where it is.