Path for images inside a block
You can display image using following URL:

/drupal/xxxx/sites/default/files/background.jpg

This is for your local setup. While migrating your drupal setup to production at root directory, your image url will break, because of directory change. To avoid this, you will need to change the path of image as below:

/sites/default/files/background.jpg

You can fix this broken your without changing the URL at production by using Pathologic. After Installing this module, you will need to enable Pathologic filter by checking Correct URLs with Pathologic in Text Formats e.g Full HTML. Then select Correct URLs with Pathologic tab from vertical tabs &amp; Path relative to server root (/foo/bar) radio option. Add following values in the text area &amp; save.

/drupal/xxxx/
/