Thank you so much ! It's working now and it has really helped me understand the Documentation content on layered images. I didn't want to turn up to class on Monday without knowing how to explain layered images.
I just changed a few lines from 570.
for fn in files:
fn = fn.replace("\\","/")
f = renpy.open_file(fn)
open_examples = set()
for l in f:
#no more changes needed, just the above