Screen Shot Captions with Numbering Not Working

I’m working on a large project with lots of screen shots. I need to add captions and numbering to each screen shot. I also need to reference the screen shots (images) in the text. I have read all of the posts I can find on Image Captions and numbering, downloaded the example project, printed posts, read and re-read. However, it still doesn’t work. Any specific help would be much appreciated.

Setup:
Windows 7 Pro 64 bit
Each image is named according to how I want the caption to read (aka Functions of the Brain.jpg, I’ve also tried Brain.jpg)
My images folder resides in the Research folder
In the editor under each image I have <$@>
In the Compile dialog in the Replacements category the Project Replacements tab

I have replaced: <$@> with :
<$img:$@>
Figure <$n:figure>$@

When compiled, the results show the image with the replacement code not the image name (see below):
<$img:$@>
Figure <$n:figure>$@

I am hoping someone will be able to assist.

I haven’t tried referencing an image in the text, but that will be the next problem to solve. One issue at a time.