Only if the images are on the server. E.g. you can call System.Drawing.Image.FromFile() in the code-behind, or DiagramApplet.loadImage(url) on the client side, and then assign the image to nodes or set it as the diagram's background.

If you need to load images from the user's local file system, you might compile the code from the following sample and add it to the jar archive. You will also have to sign the jar file using jarsigner as shown there.

http://www.captain.at/programming/java/

You might also use a file-upload control to copy users' images to the server and load them from there.

I hope that helps,
Stoyan

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