Select A Background Image (pop-up not working?)

I am in the module manager, trying to apply a background .PNG file to the "Video Feature" module.

Using "Select A Background Image" the pop-up only sees the original Joomla! directories and files. It does not see anything I upload. I have put my one .png image in the "stories" folder, yet it does not appear in the selection pop-up.

Also, I have changed my default files and images folders in the Media Manager to

[siteroot]/files
[siteroot]/files/images

The video feature pop-up cannot even see these folders. It's locked into Joomla!'s default.
[siteroot]/images

Can you help?

images/stories is root for media manager. Maybe your files are in

[siteroot]/images/stories/files/images

No, I have changed that for our site structure.

Images by default are now in:

[siteroot]/files/images

But even if I put the desired images in the "stories/images" folder, the module picker can't see them.

hmmm, that is odd. Maybe you have forbidden something in permissions. Check CHMOD of that files. Try setting one of them to 777 and see what happens.