Ed,
Definitely don't mind about the questions.. that's what we're here for
For your custom logout button/image, you simply need to add the following HTML where you want the button to be:
<a href="javascript:void(0)" onclick="javascript:jfbc.login.logout_button_click();"><img src="logoutimage.jpg" /></a>
Sorry if the instructions for the login button we're confusing. It sounds like you got something that works, but if you need other help, let us know.
As for what you did, I'm unsure what you mean in step 1 by "load position of JFBConnect". Did you mean that you're loading the JFBCLogin module in a position of an article? Other than that, what I 'think' you're doing is correct.. but if you want to post the page you're doing this on, we can take a look to make sure there's no big problems we can see.
Hope this all helps, and hope you're up and running soon!
Thanks,
Alex