I think you could be right.
I took a working version and entered a non-existent image. The result was the black screen in IE although in Firefox the images that did exist were actually shown until the non-existent image was reached in the list.
Maybe Grandstand has removed an image in the folder and forgotten to update the playlist/xml file.
Or somebody stole it!!
Mind you it does say this about black screens in the wiki,
NOTE: If you find that your Image Rotator is showing you a black screen with that spinning
progress icon, chances are pretty good that it can't actually find your images. Try using the full URL
for the images between those <location> tags in your playlist.xml file.
Opinions are my own views, not DreamHosts'.
I am NOT a DreamHost employee OK! :@
Act on my advice at your own risk!