Once you have your conditional string set up, applied to the cell column and you are ready to set the conditional format:
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go into the Condition Explorer, choose the color option you want to set and then select the unlock button at the top (looks like a padlock).
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Drag an image object over from the insertable objects pane into the unlocked cell where the image is to appear and insert the URL (you must reference the image from a hosted web page, we can not yet upload images onto our servers).
You do have to set the image size format and such to get it to display properly. I will have a write up with more specific steps since it's been awhile since I've done this, but I have done it successfully - hopefully this will get you moving in the right direction.
Also, our help guides are more of a discussion about basic reporting lessons and clarification about our Daptiv data items. Many report writing guides and help can be found in bookstores or online if you look for Cognos report writing tools since that is the engine we're using.