Yes, they are in the media folder within Lite Panels. I used your code and installed OUF & OUF_Karma to fully test and it works perfectly. I put the texture within the media folder of Lite Panels and it works correctly. I think the problem with my code is that I need to tinker with the color coding for the texture and playing with different textures. I found the one that I like and it's as close as I can get to what I want until I have time to find another texture.
Thanks for all of your help!