I want to make it so when you type in an invalid URL you go to a 404 page which I have accomplished. However I also want to make it so if a site requests an image from my domain that does not exist it gives them a 404 Image instead of a Image Error.
Prolly you'll have to redirect. like IF the request ends up 404 Not Found AND the request ends with .jpg .gif .png etc THEN redirect to your custom image at url whatever So it would be similar to your 404 statement except you'd look at what the request ended with too, and then add the redirect.
There are likely some more-English versions if you google "for dummies" with mod_rewrite (how I got my start) but ultimately the best is Apache's own pages... hm though I am assuming you're using Apache? If it's IIS I haz no clue. If you're using Lighty (lighttpd) then use this one. If you need to work on your regular expressions (how to say things like "if the file requested ends in .jpg, .gif, .png") I liked this page (though I just got the Mastering Regular Expressions by Jeffrey Friedl since they're good to know in many places).
I can't find what I need in either of those guides. I also can't find any problems similar to this on the internet. Can someone tell me exactly what to write in there?