I am very new to this so please bear with my question! LOL!

Do I need to convert my pics to html before uploading?

No. HTML files are just text files containing source code. Image are referenced from HTML files, not converted into them.

Please stick to FTP related questions here. If you need help in HTML programming / web development, see e.g. http://en.selfhtml.org/.

Ok, that's great but I don't speak German. Is there an English site?

Several probably, just Google for it ;-)