Yes.

While it's pretty cool the it extracts the files it needs, I personally think that's a bad design decision on the part of CuteSoft.Net. I'd rather have separatre directories with the images I need and no mandatory Upload directory. I know I can (and did) pull those fill into my project on their own so that I don't have to go through this, but I'm sure this is a question they're going to get time and time again until they change how this works.