NightOwl has given you good information, so I only have minor points to add.
"Why does the C: drive not show up as C: on the FDISK partition information screen? The C: drive does not show up when I am working in DOS and try to do a directory list on it."
Implicit in NightOwl's explanation is the point that partitions do not have drive letters permanently affixed to them. It is the
operating system that assigns at boot time whatever drive letters it will be using during that session.
This nuance is often misunderstood by users. There is no "C:" stamped anywhere on a disk partition as some kind of universal identifer. When XP boots it
assigns the letter C: to some particular partition; when DOS boots it
assigns C: to some partition . . . and these may or may not be the same partition. (Fortunately, a given OS usually assigns things the same way on subsequent reboots, or things would get really confusing.)
This distinction is important to understand. Referring to your partitions by drive letters (as you've done earlier in this thread when calling your Disk-2 partitions D: and G:) is bound to confuse you or us eventually. Letters are valid only when a given operating system is booted. XP may call them D: and G:, but when DOS is booted those partitions will probably be designated C: and D:.
When DOS boots it won't give a drive letter to any partition that doesn't have a file system it understands. Since NTFS file systems are foreign to DOS, the XP partition on Disk-1 won't get a drive letter.
"I was not aware that you can copy Ghost images & extensions to other storage devices as you can with other files but from your message it sounds like that is the case."
Yes. Images are files, just like any other files (though bigger). You can put them anywhere you can put files.