That's because you selected a GIF file (an image file). I know it can be confusing. The Table Images dialog allows you to display your tables in 3 different ways:
(1) If you leave an entry blank, the table will be displayed in the standard "box" format.
(2) If you select an image file (.gif, .jpg, .png, etc), the table will be displayed in the standard "box" format, but the selected image will be used as the background (this is what you are seeing in your last posted screen shot).
(3) If you select a table blueprint file (.xml), the table will be displayed according to the blueprint.
You want to select a blueprint file. When you press the Browse... button on the Table Images dialog to select a file, it *should* automatically open to your "templates" folder, which is where the blueprints that come with the software are stored, and the "Files of type" selection should have "XML Files" selected. Thus, without doing anything (changing folders or the file type), you should immediately see the dozen or so blueprints that come with the software.