XAP Packaging error cannot find resource path

I am stuck in a little problem. I uploaded the image for reference here and tried to get everything you need.

I basically moved some images in a more structured way, but Silverlight / Visual Studio doesn't have any of them. I set the path as relative, but it searches for C: / for some reason.

I have Googled, but nothing solves my problem, they all all just mention link updates in WPAppManifest.xml - that you can see what I did.

If someone can shed light on the situation, it will be very grateful, thanks.

EDIT: use "/Resources/Images/ApplicationIcon.png"and "(\)Resources\Images\ApplicationIcon.png"doesn't work either.