The reason the photos need to be in the data\photos folder is that once they are loaded in the game, it converts the players name to the players ID # and saves it to the saved games\\\\\images folder..Example john_smith.jpg bcomes player_1234.png. This changed in 11 patches. So it may not have gotten in the manual in time..
you can put pics directly into the saved games\\\\images folder , but you would need to look up every single player id number and change the name as in the example above..way, way too much work..