I managed to clean up all the files. It appears it had something to do with templates. When I create a web page and preview it puts a copy of all the images on the page in the image folder as explained above. It changes the link of the image from it's original folder to the bluevoda docs\images folder.

I think if I save a template with the original image links then it saves a copy in the image folder and tacks on a "version" number. I can't prove this as now since I updated to the latest version of BV I get the following message when trying to create a new page from template

"An attempt was made to access the Edit Button past it's end"

then it opens a blank template menu, IOW none of my save templates shows up.