<base >
only affects page-relative links. It essentially "pretends" your page is in a different location, so addresses given relative to the page will now be relative to that new location.
Your addresses aren't relative to the page at all. Regardless of where within file:///
you say the page is, the images are quite clearly given as "/images/..."
On most platforms, setting up a simple web server on localhost is fairly straightforward. (Mac OS X comes with one out of the box, which requires nothing more than checking a box in System Preferences.) Setting up such a server for development would let you view the site at http://localhost/ and might resolve this "relative links" problem.
If that solution is impractical, you might consider setting up aliases or symlinks to make the server-relative links that you already have work correctly. That's a bit hackish, though.